The Corona virus crisis has also reportedly affected Indian startups and reduced their transactions. 2019 was a successful year for Indian startups, with a record investment of $ 14.5 billion; While this amount has decreased to $ 9.3 billion as the last days of 2020 approach. India is one of the largest startup communities in the world, and according to a study by Tracxn Consulting, this is the first time since 2016 that its startups have raised less than $ 10 billion.
In 2020, the number of transactions by Indian startups decreased from 1,185 to 1,088 compared to the previous year. The number of trades decreased by at least $ 100 million from 26 trades last year to 20 trades this year. This year, the investment from these transactions was $ 3.6 billion; That was $ 7.5 billion last year. Also, the number of transactions of $ 50 to $ 100 million this year decreased from 27 to 13 compared to last year. Of course, these statistics do not include Jio Platforms investment; Because the telecom giant alone raised more than $ 20 billion this year.
Despite the declining statistics, Indian startups experienced a significant jump in the second half of this year. According to Tracxn, Indian startups, the second largest Internet market, raised $ 4.2 billion in the first half of 2020 from 461 transactions. In addition to the crisis caused by the Corona virus, which has affected startups around the world, declining participation and the absence of other major investors have been identified as factors influencing the decline in transactions.
Due to the border wars between India and China, Chinese giants such as Tencent and Alibaba and Antgroup, its subsidiary, have made fewer deals with Indian startups. Also, Softbank transferred less capital and its portfolio companies, including Paytm, Oyo Rooms and Ola, did not raise capital.
Of course, the crisis caused by the outbreak of Corona virus has helped the growth of some startups. Currently, Byju training startup is worth more than $ 11 billion; That was $ 8 billion in January 2020. Also at the height of the Corona outbreak, Unacademy, a startup in the field of online education, experienced two investments, and its current value increased from $ 500 million in February to more than $ 2 billion.
This year, Bond supported Byju. Mary Maker And other well-known investors are co-founders of Bond, and according to a source familiar with the company’s deal with Byju, the value of the Byju startup will reach more than $ 30 billion over the next three years. This year, those startups based in India They have also grown to operate on the basis of the SAAS model and provide services to customers around the world.
By 2020, 11 Indian startups including RazorPay, Unacademy, DailyHunt and Glance became Unicorn; That means they are worth more than $ 1 billion. It is said that this year, Google and Facebook made several deals with Indian startups. Last week, Google sponsored Glance and DailyHunt, and Facebook invested in Unacademy. This year, both tech giants invested in Jio Platforms.
Webhaw Dumondo, Founder and CEO of Better Capital said:
I witnessed the recession of 2001 and 2008, and now that Covid 19 has made the world a crisis, I am reminded of what happened in those years. The record of previous years was the beginning of a new generation of teams that built the next generation of companies.
This year, Better Capital supported India’s newly established startups and made 43 investments and several other deals. Mergers and acquisitions have increased in 2020. Byju bought WhiteHat Jr. for $ 300 million, and in July of this year, Unacademy bought PrepLadder, a medical startup for $ 50 million.
In addition, Unacademy spent $ 5 million to buy a large stake in Mastree. Other deals on Indian startups this year include the sale of Nedmeds and Urban Ladder to Reliance Industries. For the first time, Indian startups are on the verge of entering the capital market. It is said that in 2021, Zomato, Flipkart and Policybazaar are among the startups that will attract public attention to their business by entering the capital market. By 2022, startups Paytm, Byju, PhonePe and Delhivery will enter the capital market, according to Bernstein analysts.