India 2022: An Inflection Point for Technology Start-Ups to Emerge
A recent report from the World Economic Forum — Mission 2070: A Green New Deal for a Net-Zero India — outlines how India’s path to net-zero will have an estimated economic impact of over $1 trillion by 2030 and around $15 trillion by 2070. India also has a unique opportunity, and an important role, in fostering regional co-operation in South Asia, thus creating new opportunities for growth and prosperity.
More and more tech-enabled companies in India are raising funds from the capital markets
With the birth of over 20 new unicorns in the last 18 months, India has experienced some record-breaking wins in the start-up space. Investment in India is driven not only by VC investors but also by more traditional funds, who want to make the most of the broad applicability of digital business models in the pandemic.
India is in the middle of an inflection point where the global investors are looking towards the country as the next Unicorn hub of the century. The exit opportunities in start-ups through the IPO route have turned out to be feasible for the first time in India. This has a top-to-bottom effect in the investment ecosystem, where the conviction of the global PE firms in the businesses has stirred the interests of even the small players and angel investors, hence having a multiplier effect on the liquidity for start-up funding.
SoftBank Plans To Invest Up To $10 Bn In Indian Startups In 2022
Masayoshi Son-led SoftBank Group would like to invest $5 Bn — $10 Bn in India, SoftBank Investment Advisers chief executive Rajeev Misra said on Thursday during Bloomberg’s 6th edition of the “India Economic Forum 2021”. The Japanese investment giant, through its Vision funds I and II, has led investments in the Indian startup ecosystem for over 10 years, and now plans aggressive expansion with a larger pool. Unlike big bets that SoftBank placed on Paytm, Flipkart, and OYO, the current cheque sizes are getting smaller, and the investment portfolio getting larger. Fintech and edtech are the most interesting avenues for investments.
India’s SaaS industry represents a value-creation opportunity of up to $1 trillion by 2030
The study by SaaSBOOMi also discusses how there has to be an increased outlay for seed/early-stage companies — currently, this is only 25% of the total $1.5 billion invested in 2020. In addition, Underinvestment may be causing Indian companies to miss important growth opportunities. SaaS companies in India are underinvesting in their go-to-market efforts: those with revenues under $5 million spend only about 25% of revenues on GTM compared to 80–90% spent by global leaders.
China Tech Crackdown: More Fuel For Indian Startups As Global Capital Shifts From China
With China’s tech crackdown forcing global risk investors to look elsewhere, it seems the funding tap for Indian startups isn’t going to run dry anytime soon. Indian startups continued to witness a funding spree during the festive season as the ecosystem saw $4.1 billion pour into deals across 41 growth and 96 early-stage startups in October. In early-stage deals that were disclosed in October, a total of 96 startups raised funds worth $365 million.
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