Startup funding in 2021 defied all odds, shows Nasscom report

In 2021, startups raised over 2x of what they raised in 2019 and 3x of what was raised in 2020, the report stated. As the country saw massive growth in the number of unicorns last year, Nasscom has zeroed down on 135 soonicorms which it expects will reach unicorn status within the next 2-3 years.

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The minister also said that 2021 was a year that defied all odds, and 2022 will be the breakthrough year, in which India will unlock immense exponential value. “India at 100 will be renowned as a startup nation,” said Goyal.

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Goyal also asked the startup ecosystem to leverage deep tech to build solutions for local and global markets, in the areas of AI, IoT, big data, data analytics, Blockchain, virtual reality, 3D printing, drones, and tap into the potential of tier two and three cities.

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Close to 65% of the jobs created by the startup ecosystem have come from unicorns and late-stage startups.

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According to the report, the Indian startup ecosystem is increasingly getting diverse as it matures. Around 40% of startups founded in 2021 are based outside the top startup hubs in the country and around 20% of the startups in the ecosystem are building solutions for low-income groups in the country. The report also highlighted that 12-15% of Indian startups have at least one female cofounder. Almost 36% of female-founded startups focus on areas like edtech, healthtech and retail tech sectors.

“There was a big jump in corporate participation. Nearly 260 plus unique corporations actively participated in the startup ecosystem, versus around 170 in 2021. And of the 260+ around 175 actually made a significant investment in the startup ecosystem,” said Ghosh.

Almost 50% of these companies were global MNCs, showing the increasing appetite for both Indian and global companies to invest in the ecosystem. The ecosystem also saw over 185 M&As led by both Indian and global startups.