Indian startups raised more than $7 billion in funding in the fourth quarter of 2021 (October-December), up 18% from the third quarter, and 14 of these companies joined the ever-growing unicorn club according to a Nasscom-PGA Labs report. Unicorns are privately held companies with a market capitalization of $1 billion or more.
According to the report, the number of deals closed in the October-December quarter increased by 52 percent to 184, up from 121 in the previous quarter. Fintech and retail tech were the most well-funded sectors, accounting for 24% and 23% of total deal value in the reported quarter, respectively.
“Fintech continues to develop its legacy and penetration into the startup ecosystem. Growing infrastructure stack, innovative solutions and new business models will continue to keep this sector in limelight,” the report said. Six out of the 14 unicorns added in the quarter were from the retail tech and fintech sectors.
The increase in online retail was fueled by widespread digital adoption in the country as a result of the ongoing health crisis.
Cars24, an online marketplace for used cars, raised $400 million in the quarter, followed by Razorpay ($375 million), PharmEasy ($350 million), Nykaa ($300 million), and Spinny ($283 million), according to the report.
Growth-stage funding accounted for 56 percent of total deal value, but only 34 percent by deal count, according to the report. According to the report, 68 percent of transactions had a value of $100 million or more.
Business-to-business (B2B) startups raised more than $1.6 billion in 72 deals, with a deal size of around $22 million on average. Razorpay, Zetwerk, and Ninjacart were the top-funded B2B startups, according to the report. While business-to-consumer (B2C) startups raised over $5.6 billion in 112 deals, with an average deal size of $51 million, the top-funded startups in the sector were Cars24, PharmEasy, and Nykaa.
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