Indian startups secure $395 million across 20 deals last week, marking a dramatic increase of approximately 350% compared to the previous week, as reported by The Statesman.
In July alone, Indian startups attracted $1.03 billion in investment, a significant boost attributed to the Indian government’s decision to abolish the angel tax in the Union Budget 2024-25. This tax had previously been imposed on foreign investors.
The report highlights that this funding was achieved through 126 deals, including 28 growth or late-stage deals worth $725 million and 72 early-stage deals totaling $311 million. Leading the funding surge was hospitality and travel-tech company Oyo, which raised nearly $175 million. Other sectors benefiting from this funding wave include electric vehicles (EVs), fintech, and wealth and asset management.
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Notably, Indian EV firm Ather Energy secured $71 million, elevating its valuation to $1.3 billion and earning it the status of a “new unicorn.” A unicorn is a privately held startup with a market value of $1 billion or more. Unicorns often evolve into multinational companies listed on various stock exchanges, contributing to their home countries’ economic prosperity.
According to CB Insights, the U.S. had 653 unicorns in 2023, China had 169, and India had 70. The Indian government has implemented over 55 regulatory reforms since 2016 to improve the ease of doing business, facilitate capital raising, and reduce compliance burdens for startups.
Additionally, Indian startups have generated over 1.55 million direct jobs to date, underscoring their significant role in the country’s employment landscape.
