Venture capital firms Sequoia Capital and Tiger Global led funding for Indian startups from April through June, with the fintech sector accounting for most of the $6 billion (c.
Fintech companies attracted about 26 percent of total investments made during the quarter, followed by media and entertainment (19 percent), enterprise technology (16 percent), retail technology (9 percent), edtech (8 percent) and healthcare technology (5 percent), according to the Report.
“Prominent investors Sequoia Capital, Tiger Global, Alpha Wave and Accel have closed over 6 transactions across different sectors,” she added.
Of Tiger Global’s total investments, 40 percent was in the fintech sector and 20 percent in enterprise technology. At Sequoia, about 25 percent of its funding came from enterprise technology and 20 percent from financial technology (fintech).
Around 60 percent of Tiger Global and Sequoia’s investments were made in the growth phase of the startups.
There were only four unicorns in the April-June quarter — neo-banking firm Open, SaaS platform LeadSquared, edtech startup PhysicsWallah, and online beauty marketplace Purplle.
Open became the first neobanking unicorn after raising $50 million in Series D funding from IIFL.
LeadSquared raised $153 million in Series C funding from WestBridge Capital to become a unicorn, while PhysicsWallah raised $100 million in its Series A funding from Westbridge and GSV Ventures. Purplle has raised $34 million in its Series E funding round from Paramark Ventures.
In the previous January-March period, 16 new unicorns emerged, falling to just four in the quarter due to the slowdown in fund inflows into the Indian start-up space, he added.
According to the report, investment in Indian tech startups fell about 17 percent to $6 billion from April to June 2022 due to the macroeconomic slowdown.
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