Indian startups have attracted a record amount of funding in the third quarter of this year. Despite the economic slowdown, funding has been higher than ever at a whopping $ 2.5 billion. While the number of deals has dropped, the value has increased. More and more new investors are keen on investing in India.
The largest deals of the quarter include business-to-business marketplace Udaan, which raised $414 million from Altimeter Capital, Hillhouse Capital and DST Global; Ola Electric, the ride-hailing firm’s electric vehicle arm, which raised $250 million led by SoftBank Group, and Rebel Foods, known for its Faasos rolls and Behrouz Biryani, which raised $130 million led by hedge fund Coatue Management.
“Investors are generally long on India. Despite slowdown concerns, venture capital investors are taking a seven year view and expect consumption-led growth in that period. There have also been significant exits and liquidity created for investors, which brings even more capital back in,” said Arpan Sheth, partner at consultancy firm Bain & Co. He also added that valuations are increasing because the market has grown and a handful of companies have received a lot of interest from investors.
Image Source –KrAsia