The coronavirus pandemic and a few more reasons slowed dealmaking for startups in India this year.
The Indian Startup ecosystem is ending 2020 with about $9.3 bn which is 5.2bn less than last year.
According to consultancy firm Tracxn, this is the first time since 2016 that startups in India has raised less than $10 bn in a year, the number of deals fell from 1,185 last year to 1,088 in 2020. These figures do not include investments in telecom giant Jio Platforms, which alone raised over $20 bn this year.
Although Indian startups witnessed a substantial rebound in the second half of this year. In the first half, startups in the world’s second largest internet market had raised $4.2 bn from about 461 deals, said Tracxn.
11 Indian startups became a unicorn this year, M&A activities also accelerated. Byju’s acquired WhiteHat Jr for $300 mn, while Unacademy acquired PrepLadder, which offers courses aimed at medical students, for $50 mn in July.