In many ways, 2021 has been a record-breaking year for the Indian startup ecosystem. It has already seen 22 startups becoming unicorns within the first eight months. Not only that, the ecosystem is setting new benchmarks in terms of mergers and acquisitions too.
The number of M&As since January stands at 119 compared to 86 such deals in the whole of 2020, according to YourStory Research. The cumulative transaction size of M&As this year is $3.8 billion, up from $1.3 billion in 2020.
Edtech decacorn BYJU’S has led this consolidation. This year alone, it has spent over $2 billion to acquire seven startups across India and the US.
The strong M&A momentum in the ecosystem can also be attributed to Indian startups acquiring established businesses. Deals include stockbroking platform Groww buying out the mutual fund business of Indiabulls, merchant payments unicorn BharatPe taking over Punjab and Maharashtra Cooperative Bank (PMC Bank), and medtech startup Pharmeasy buying out diagnostics chain Thyrocare.
The last one was the first instance of a unicorn acquiring a listed entity in a deal valued at Rs 6,334 crore.
The year has also been big for Tata Digital, which has followed up its acquisition of Bigbasket with the buyouts of 1MG, and a strategic investment in Mukesh Bansal-led Curefit.
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News & Updates
Before you go, stay inspired with…
Exfinity Venture Partners Chairman V Balakrishnan is an established figure in the IT industry.
“The increased inflow of capital has triggered M&A activity as startups are looking at leadership positions. Startups are willing to take a higher risk through M&A for market leadership or acquiring skillsets.”
— V Balakrishnan, Partner, Exfinity Venture
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