2019 Was Best Year For Indian Tech Startups: Rs 1 Lakh Crore Raised By 1000+ Startups From 800+ Investors
It turns out that this is a good period for Indians to invest and enter the startup market. It has been reported by multiple survey reports that the Indian tech startup market is not only burgeoning in size but also in the revenue it has been generating.
Amongst a declining and not so bright economy, the Indian startup market has managed to not only perform great but also disrupt it own records of generating labels and profits for itself. As a bolster to them, the government too has had a god role to play in this success.
On September 20, the Finance Minister Nirmala Sitharaman exempted start up companies from angel tax and cut down corporate tax rate by 25% from 30% for all companies.
According to government, any startup registered with the Department of Industrial Policy & Promotion, a government body, will be exempted from the angel tax. Currently, more than 24,000 startups are registered with it.
Indian Tech Startups are Creating History
Its safe to say that the Indian tech startups have never had it so good. Local tech start-ups have raised $14.5 billion in 2019, crossing their own previous year record of $10.6 billion.
Tech startups in India this year participated in 1,185 financing rounds, out of which 459 were Series A or later rounds, from 817 investors. In fact, early stage start-ups raised $6.9 billion this year, surpassing last year’s $3.3 billion figure.
What is to be noted here is the fact that the early-stage start-ups which struggled to attract investors last year saw a 22% year-over-year increase in the number of financing deals this year, which is quite applauding. Cumulatively, their valuation increased by 15% from last year.
This year saw 128 Indian start-ups getting acquired and 9 became unicorns. This year Indian tech start-ups also attracted a record number of international investors.
More Number and Figures
In 2016, the tech startups accumulated just $4.3 billion. The flow of capital has increased since then, with 2017 marking $10.4 billion for Indian start-ups.
The decade has seen an impressive 25x growth from a tiny $550 million in 2010 to $14.5 billion in 2019 in terms of the total funding raised by the start-ups.
In 2014 and 2015, startups were largely focused on building e-commerce solutions and replicating ideas that worked in Western markets. Today however, they are tackling a wide-range of categories and opportunities and building some solutions that have not been attempted in any other market.
Success Reports on Different Startup Sectors
The analysis report found that lodging startups raised about $1.7 billion this year, Oyo alone bagging $1.5 billion, followed by logistics start-ups like Elastic Run, Delhivery and Ecom Express that secured $641 million.
176 horizontal marketplaces, over 150 education learning apps, more than 160 fintech start-ups and 120 trucking marketplaces, 82 ride-hailing services, 42 insurance platforms, 33 used car listing providers and 13 startups are helping businesses and individuals access working capital secured funding this year.
Fintech startups alone raised $3.2 billion this year.