Despite the continuing economic impact of the coronavirus pandemic, the first quarter of 2021 saw robust funding activity in the Indian startup ecosystem. In Q1’21, Indian startups raised $3.76 billion across 257 deals.
According to YourStory Research, the amount of funding raised and the number of deals seen in Q1 2021 was the highest across the past five consecutive quarters.
The number of deals in Q1 rose to 257, up about 18 percent from 218 deals in Q1 2020 and up 70 percent on a sequential basis from Q4 2020 levels.
The top three sectors in terms of the funding amount raised were fintech, edtech, and gaming — the latter re-entering the top-charts with Dream11’s $400-million funding, Nazara Technologies IPO listing, and MPL expected to enter the unicorn club this year.
While Delhi-NCR, Bengaluru, and Mumbai continued to lead the charts in terms of amount raised and number of deals, Tier II and III cities weren’t far behind, with Thrissur becoming the newest Tier-II entrant into top 10 charts.
Three startups entered the unicorn club between January and March 2021 — Digit Insurance, Innovaccer, and Five Star Finance, taking the total unicorn count to nearly 50.
In partnership with Global Alliance for Mass Entrepreneurship (GAME) and others, the Government of Punjab has been working to boost ease of doing business for MSMEs in the state. Punjab Chief Minister Captain Amarinder Singh said that the Punjab government has taken several steps towards the same, including passing Punjab Anti-Red Tape Act 2021, amended Punjab Bureau of Investment Promotion Act to introduce provisions of deemed approval and automatic approval etc.
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