Sequoia, Tiger Global Lead Startup Funding In Apr-Jun; Fintechs Attracted Most Funds: Nasscom Report

Venture capital firms Sequoia Capital and Tiger Global led funding in Indian startups during April-June, 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% of the total investments made during the quarter, followed by media and entertainment (19%), enterprise tech (16%), retail tech (9%), edtech (8%) and health tech (5%), 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% were in the fintech sector and 20 per cent in the enterprise technology domain. For Sequoia, enterprise technology accounted for about 25% of the funding, and financial technology (fintech) 20%.

Around 60% 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 creation of 16 new unicorns, which dropped to only four in the reporting quarter due to decline in fund inflows into the Indian startup space, it added.

Investment in Indian tech startups fell by about 17% to $6 billion in April-June 2022 owing to macroeconomic slowdown, according to the report.