Indian startups have raised USD 7.2 billion in January-March quarter of calendar year 2022, as per a report by Nasscom in association with PGA Labs. Enterprise Tech has emerged as the top-funded vertical, followed by FinTech and large-ticket deals helped these sectors account for 41 percent of total funding, the joint report said.
Although, total number of deals increased by 34 percent as compared to previos quarter, the per centage of funding in large funding rounds reduced from 68 percent to 58 percent in Q1 CY22, the report revealed. Approximately 81% of the funding activity was driven by early-stage and growth-stage deals, it said.
Almost 72 percentof investments in fintech sector are in growth stage. Lending and collection received the highest funding which equates to $755 million.
The report noted that B2B tech start-ups funding accounted for 59 per cent of the total $7.2 billion, and stood at $4.2 billion. When it comes to investors, the top investment firms like Sequoia Capital, Accel and Tiger Global have backed a diversified group of companies this year, the report suggested. Sequoia remained the top investor for Q1 CY22, majorly across sectors like enterprise tech, fintech, retail tech, edtech etc.
Tech start-up ecosystem received a major boost with the formation of 15 unicorns during the quarter. 7 out of 15 Unicorns added in Q1 CY22 are from Enterprise tech, fintech & SCM & logistics. The report also said that Areas like Neo Banking, Buy Now Pay Later, and Crypto and NFTs are taking the market by storm and getting significant traction.