Venture capital firms Sequoia Capital and Tiger Global Management led funding in Indian startups during April-June period, with the fintech sector attracting most of the $6 billion (about Rs 47,870 crore) investments made during the quarter, industry body Nasscom said in a report.
Fintech firms attracted about 26 percent of the total investments made during the quarter, followed by media and entertainment (19 percent), enterprise tech (16 percent), retail tech (9 percent), edtech (8 percent) and health tech (5 percent), according to the report.
“Prominent investors Sequoia Capital, Tiger Global, Alpha wave and Accel have done over 6 deals across sectors,” it added.
Out of Tiger Global’s total investments, 40 percent were in the fintech sector and 20 percent in the enterprise technology domain. For Sequoia, enterprise technology accounted for about 25 percent of the funding, and financial technology (fintech) 20 percent.
Around 60 percent of the investments by Tiger Global and Sequoia were made in the growth stage of the startups.
The April-June quarter saw only four unicorns: neobanking firm Open, SaaS platform LeadSquared, edtech start-up PhysicsWallah and online beauty products marketplace Purplle.
Open became the first neobanking unicorn after raising $50 million in Series D funding from IIFL.
LeadSquared raised $153 million in Series C funding from WestBridge Capital to become a unicorn, while PhysicsWallah raised $100 million in its Series A funding from Westbridge and GSV Ventures. Purplle raised $34 million as part of its Series E funding round from Paramark Ventures.
The preceding January-March period had witnessed the creation of 16 new unicorns, which dropped to only four in the reporting quarter due to a decline in fund inflows into the Indian startup space, it added.
Investment in Indian tech startups fell by about 17 percent to $6 billion in April-June 2022 owing to macroeconomic slowdown, according to the report.
