Indian Startups Raise $6.5 Billion in Q2 2021

Strong Performance Amidst Pandemic

Despite the challenges posed by the second wave of COVID-19, the April-June quarter of 2021 proved to be robust for the Indian startup ecosystem. According to the latest NASSCOM-PGA Labs report, startups in India raised $6.5 billion across 160 deals during this period.

Unicorn Growth

Eleven startups achieved unicorn status, with valuations surpassing $1 billion in the same quarter, bringing the total tally to 53 unicorns in the Indian market. The surge in funding and unicorn rounds has prompted a revision in projections, with expectations now set at 150 unicorns by 2025.

Resilience Amid Challenges

The report highlights the resilience of the Indian startup ecosystem, particularly in weathering the headwinds of the pandemic’s second wave. Despite these challenges, Q2 2021 emerged as the most funded quarter and saw the addition of the highest number of unicorns.

Funding Distribution

Nearly half of the $6.5 billion fundraise came from the top 10 deals of the April-June quarter, indicating substantial investor interest and confidence in these startups.

Unicorn Entrants

In addition to the unicorns from the first quarter of 2021—Innovaccer, Infra.market, Digit, and Five Star Finance—the April-June quarter witnessed the addition of several new unicorns. These include Urban Company, Cred, Meesho, Groww, PharmEasy, ShareChat, GupShup, Chargebee, Moglix, Zeta, and BrowserStack.

Third Quarter Outlook

The momentum continues in the ongoing third quarter, with another 10 startups joining the unicorn club. This includes BlackBuck, Droom, OfBusiness, BharatPe, MindTickle, UpGrad, CoinDCX, Eruditus, Grofers, and Zetwerk.

Overall Unicorn Growth

With 25 new entrants in 2021 so far, the Indian startup ecosystem demonstrates remarkable growth and resilience, paving the way for a dynamic future.