India Beats China In VC Funding Growth With 150% Rise In New Fundings (Full Report)

India Beats China In VC Funding Growth With 150% Rise In New Fundings (Full Report)
India Beats China In VC Funding Growth With 150% Rise In New Fundings (Full Report)

A positive turn of events for India – the growth of venture capital (VC) deal value and volume in India has now beat that of China in the first three quarters of the current calendar year.

Due to the increasing caution by investors on China’s crackdown on its technology industry, India has been able to achieve this feat.

India Beats China In VC Funding Deals Value And Volume

As per the study, an amount of $20 billion has been invested by VC investors in Indian companies during the first nine months of 2021, which means that there has been an increase of 150 percent from the same period last year as compared to 97 percent growth in China.

In China, there has been an increase in the deal value from $34 billion to $67 billion, as per data from the tech intelligence firm, CB Insights.

In the third quarter of the calendar year, the VC deal volumes and values of India reached a record high. 519 companies raised a total of $9.9 billion as compared to $3.3 billion in 288 deals during the same period in 2020. 

The decline of growth in China might be because of the increased crackdown by the country on tech companies in China, which has affected multiple leading tech firms in various sectors including e-commerce, education, gig economy, and online insurance.

Meesho, Swiggy, Ola, And Others Become Top Five Equity Deals

The companies to raise the top five equity deals in the third quarter were Social commerce firm Meesho ($570 million), ride-hailing company Ola Cabs ($500 million), food delivery startup Swiggy ($450 million), and edtech firms Unacademy ($440 million) and Eruditus ($430 million).

Whereas, Delhivery, Swiggy, Pine Labs, and Shiprocket have been among the top ten companies globally that raised funding in Q3’21 by Mosaic score. This score is a quantitative framework that CB Insights deploy to measure and predict the health and future success potential of private tech companies.

Sequoia Capital India has been the only Indian VC in the list of top 10 Asia-based investors in Q3 by company count.

Early-stage deal share in India’s venture capital funding has grown to 75 percent till October 2021; the same has been only 58 percent in China.

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