Unfold Craft

Funding agencies in India

Tiger Global is a leader in the investment of top dollars and has overtaken the US venture capital firm Sequoia Capital as the top investor in India’s emerging startup and unicorn ecosystem. 

Source Texts:     “The US-based investment firm Tiger Global is currently leading when it comes to investing top dollars, overtaking another US-based venture capital firm Sequoia Capital as the top investor in the burgeoning Indian startup/unicorn ecosystem.” 

According to the 2018 Indian Startup Ecosystem Report of the National Association of Software and Services Companies (Nasscoms), startup funding in India increased by 10.8% from $2 billion in 2018 to $4.2 billion in 2018. The Indian start-ups overall have raised $1.21 billion in the first six months of this year according to Venture Intelligence, compared to $5.3 billion in the same period last year.    

Source Texts:  “According to the National Association of Software and Services Companies (Nasscoms) Indian Startup Ecosystem Report 2018, startup funding in India grew 108% in 2018, from US$2 billion to $4.2 billion.” 

“Overall, Indian start-ups raised $12.1 billion in funding in the first six months of the year, compared with the $5.3 billion raised during the same period last year, according to Venture Intelligence.” 

While most start-ups rely on investor financing, other forms of raising funds such as crowdfunding, angel investment and start-up grants are gaining popularity in India. Foreign investors and venture capitalists are increasingly investing in domestic companies. Others such as D1 Capital and Dragoneer Investment Group are also supporting local startups to grow in recent years. This year has been phenomenal, not only in terms of global investors striking deals to support profitable ideas, but also in terms of valuation increases seen in mature companies, which has led to the creation of many unicorns. Since January, 13 companies in India have achieved unicorn status, a company valued at more than $1 billion.
   
Source Texts:     “Others like D1 Capital and Dragoneer Investment Group are backing more local startups across growth and late stage.This year has been phenomenal not only in terms of how global investors have scooped up deals and backed winning ideas, but also in terms of valuation bump-up seen by mature businesses, leading to many unicorns being created.Since January, India has seen around 13 companies attain the unicorn status, that is, being a company with more than $1 billion in valuation.” 

“Foreign investors and venture capitalists have been investing in companies in India.” 
“While most startups rely on investor funding, other ways of raising funds like crowdfunding, angel investment and startup grants are also gaining popularity in India.” 

Startups have raised a total of $7.8 billion in the first four months of the calendar year, 70% of the total $12.1 billion raised for 2020, more than 50% more than the $14.2 billion raised in 2019 (data from US research firm Pitchbook), with average funding rising from $149.4 million in 2020 and $184.1 million in 2019 to $2,521 million in 2021 ; Source: E.T. Inventus Capital has financed more than 100 small and large companies worth more than $30 billion. The State of India’s Startup Ecosystem Report 2019 includes 849 funds, 45 family funds, 44 angel networks and 2,551 angel investors in India.    

Source Texts:     “Startups raised total investments of $7.8 billion in the first four months of this calendar year, which is almost 70% of the overall corpus of $12.1 billion raised in entire 2020 and more than 50% of $14.2 billion raised in 2019, data from US-based research firm PitchBook shows.The average funding size has increased to $25.21 million so far in 2021, up from $14.94 million in 2020 and $18.41 million in 2019, as per data exclusively sourced by ET.” 

 “As per the report, there are nearly 849 VC funds, 45 family funds, 44 angel networks and 2,751 angel investors investing in India.” 

“Inventus Capital is funding more than 100 small and big companies worth of over $30 billion.” 

In India, VC firms have invested in 97 start-ups, including urban companies like Ninjakart. In the first half of 2019, Tiger Global Management invested $300 million in 13 companies in India.    

Source Texts:     “In the first half of 2019, Tiger Global Management has invested nearly $300 Mn in India across 13 companies.” 

“In India, the VC firm has invested in nearly 97 startups including Urban Company and Ninjakart.” 

Kalaari Capital was founded in 2011 in Bengaluru and made 92 investments in 3 funds which lead to 15 exits in companies such as Snapdeal, Myntra, etc. So far, the VC company has invested 9.2% through 3 funds, which has led to the 15 withdrawals of these companies.   

Source Texts:     “It has made nearly 92 investments across 3 funds, leading to nearly 15 exits from companies like Myntra and Snapdeal.” 


“Till now It has made nearly 92 investments across 3 funds and leading to nearly 15 exits from companies like Myntra and Snapdeal.” 

The group (which is made up of Girish Mathrubootham (FreshWorks), Manav Garg (Eka Corporation), Shubham Gupta (investment firm Matrix) and Avinash Raghava (Nasscom, iSpirt, Saasboomi) announced on Wednesday that their newly created $85 million venture capital fund The Fund will support young Indian startups actively pursuing software and services.    

Source Texts:  “The group — Girish Mathrubootham of Freshworks, Manav Garg of Eka Corporation, Shubham Gupta, formerly with investment firm Matrix, and Avinash Raghava, formerly with Nasscom, iSPIRT and SaaSBOOMi — said on Wednesday it has created a venture capital fund, called Together Fund, with an initial corpus of $85 million to back young Indian startups operating in the software-as-a-service space.” 

The company has so far received $65.15 million in funding from the group of 25 investors. A pair of investors have pledged a cumulative $1 million for its growth from the company’s initial financing. The total amount of the financing amounts to 4,712 million dollars raised by the group from 28 different investors, including the American company Insight Partners.    

Source Texts:     “In total, this funding stands at $471.2 Million and was raised by a group of 28 different investors, which includes the American company, Insight Partners.” 

“A pair of investors have pledged a cumulative $1 Million to the companys efforts during its seed funding round.” 
“So far, the company has received $651.5 Million in funding from a group of 25 investors.” 

The company has managed to obtain a substantial initial financing of $40.3 million from a group of six investors. The company has seen the support and validation of its bid due to the $25 million in seed capital it has raised. To date, the company has received significant start-up funding, with $7.5 million raised over five years.   

Source Texts:     “So far, the company has managed to get a substantial amount of startup funding, with $40.3 Million being raised from a group of six investors.” 

 “To date, the company has received significant support in terms of startup funding- with $75 Million being raised in five years.” 
“So far, the company has seen backing and validation of their offering by virtue of the $2.5 Million in startup funding that they have raised.” 

The Early, Seed and Technology Venture Capital Fund was founded by Sanjay Nath and Karthik Reddy and has a total capital of 22.5% which has been managed by investing in famous names such as Dunzo, Unacademy, Milkbasket, Yulu, LBB, etc. The debt fund is N + 1 agnostic to the capital sector and invests in income generating companies with ticket sizes between Rs 2 million and Rs 15 crore. Blume Ventures raised $41 million through the Opportunity Fund, a fund designed to invest in the best-performing portfolio companies.    

Source Texts:     “The fund is sector and stage agnostic, and invests in revenue-generating companies with ticket sizes up to $2 million (Rs 15 crore).” 

    “Blume Ventures raises $41 Million opportunity fund, fund is designed to invest in best performing portfolio companies.” 
    “The VC firm has nearly $225 Mn total capital under management, with investment in certain household names like Dunzo, Unacademy, Milkbasket, Yulu and LBB.” 

Helion Ventures, a medium-sized company, invests in technology-driven companies such as e-commerce, online services, mobility and outsourcing. The company is headquartered in India with offices in Bangalore and Gurgaon. Matrix Partners invests in early stage and seed companies in the United States and is headquartered in India.    

Source Texts:     “The firm invests in seed and early-stage companies in the United States and India.”

    “The firm is focuses only in India with offices in Bangalore and Gurgaon.”
    “Helion invests in technology powered businesses like ecommerce, online services, mobility, outsourcing etc.” 

The firm is said to have invested in 442 companies around the world with seven funds. Canaan Partners is a global venture capital firm that started operations in India in 2000. In 2016, the company closed down its 450 funds, investing in e-commerce giant Flipkart and food aggregator Swiggy.   

Source Texts:     “Canaan Partners a global venture capital company started operations in India in year 2000.” 

    “The company is said to have invested in nearly 442 companies across the globe with 7 designated funds.” 
    “In 2016, Accel had closed its $450 Mn fund through which it invested in ecommerce giant Flipkart and food aggregator Swiggy.” 

The American venture capital firm raised $550 million in its sixth India fund in order to boost investment in the country’s Start-Up Ecosystem. Along with the company, Mumbai-based venture capital firm Nexus Venture Partners raised a fresh Silicon Valley fund with its fifth fund of $450 million.   

Source Texts:     “Accel has raised $550 Million for its sixth India fund to boost up its investments in the countrys startup ecosystem.”

 “Silicon Valley and Mumbai-based venture capital firm Nexus Venture Partners have raised fresh funds for its $450 Million fifth fund.”

Startup India aims to build a robust ecosystem to support and encourage innovation and startups in India. The last fund, Fund VI, closed at $550 million in December 2019, investing in early-stage seeds and Indian start-ups. The Indian government has also launched a fund, the Fund for Startups (FFS), with $1.3 billion in investments for start-up initiatives.    

Source Texts:     “The last one or the Fund VI was closed at $550 Mn, in December 2019, to invest in seed and early-stage Indian startups.” 

    “The Government of India created the Fund of Funds for Startups (FFS) with $1.3 billion for investment in startups under the Startup India program.” 
    “The initiative aims to build a robust ecosystem to support and nurture innovations and startups in India.” 

Selected start-ups will receive assistance in raising funds from venture capitalists, sovereign wealth funds, angel investors and others. Venture capital funds are investments by high-growth companies and startups, and these companies have their own preferences in terms of the sector, the company and the level of funding. In return for these investments, they want equity and a large stake in the company’s decision-making process.    

Source Texts:     “Selected startups receive help for fundraising from venture capitalists, government funds, and angel investors, among others.” 
    “The Venture Capital Funds are the investments that are done in the high growth companies/startups as they have their own preference of sector, companies, and amount of funds.” 
    “In return for their investments they want the equity and also have a major stake in the decision-making process of the company.” 

The equity financing does not have to repay the funds invested by the investors in the company. The risk for companies is that the amount they receive will be debt-free if they do not return the funds, which poses a high risk to investors in terms of equity financing

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