Start-ups raised a record $24.1 billion in 2021, a two-fold increase over pre-COVID-19 levels, according to a new study by NASSCOM and Zinnov.
According to the study, ‘Indian Tech Start-up Ecosystem: Year of The Titans’, more that 2,250 start-ups were added in 2021, over 600 more than what was added in the previous year.
The study said: “Start-ups raised USD 24.1 billion in 2021, a two-fold increase over pre-COVID levels. In comparison to 2020, there was a 3X increase in the number of high value deals (deals > USD 100 million), demonstrating investor confidence with a pool of active angel investors of 2400+ and a readiness to take significant risks.”
It added that while the U.S. remains the leading source of foreign direct investment (FDI) in start-ups, worldwide involvement is also growing. About 50% of the deals had at least one India-domiciled investor.
The study added that the start-up ecosystem saw a 2X gain in cumulative valuation from 2020 to 2021, with an estimate of $320-$330 billion, demonstrating the sector’s development and recovery throughout the pandemic.
The industries that saw the most net new job creation were BFSI (banking, financial services and insurance), ed-tech, retail and retail tech, food-tech, supply chain management, and logistics and mobility.
On the back of Internet commerce, freelancers, and service industries, indirect jobs have also recovered.