Indian startups are turning into hot spots for Investors

Funding in the latest environment has become a trend to be perceived for growth. Now, businesses are not only seeking funds through relations in their neighborhood but also through global investors who believe in their viable idea, goodwill, and market opportunity they will get through the startup. We can also see how India is transforming into a cyber hub for international corporations to invest in and participate in. This benefits the potential startups to have a source for their growth and expansion and also provides a massive opportunity for startups to gain trust in the global markets, during competitive times, through their products and services.

Top 30 best-funded Indian startups 2020 - Disfold

Funding is kept as a preference in the business sector because when a company can get the support of another, they become solid and able to acquire more potential and acceptance. This process involves both parties’ interests and keeping the terms and conditions on the table to build a relationship.

Recently, with the Series C investment of Zip co, ZestMoney successfully acquired $50 million. With such an investment amount from an Australian-based company, ZestMoney is ready to move forward with zipping onboard. ZestMoney is an Indian-based firm that offers services in the Buy Now, Pay Later, which allows customers with no credit card or no credit history, to pay EMI and make products affordable for their consumers. The company was founded by Lizzie Chapman, Priya Sharma, and Ashish Anantharaman in 2015, offering digital-based pay later services in India.

India's ZestMoney raises $20M to grow its digital lending service |  TechCrunch

After receiving such colossal Investment, the CEO and Co-founder of ZestMoney, Lizzie Chapman, said, “We are thrilled to have Zip come onboard for the next phase in our journey of powering affordability in the lives of Indian consumers. This is deep validation of our position as the market leader in the Buy Now, Pay Later category in India.” She believes that soon maximum Indian consumers will be able to have the benefits of traditional credit cards without owning one, also knowing the shift towards digital marketing options available. She claimed that soon India would emerge as the largest BNPL market in the world over the next five years.

Also, According to Economic Times Report, Indian startups in the first six months of this year have already raised $12.1 billion from venture capitalists and private equity firms. It is believed and also claimed by some entrepreneurs and industry insiders that the adoption of digital technology by businesses has favored startups, especially during the pandemic. According to the data, there

were more than $100 million-plus investment rounds in the last six months, with late-stage businesses raising larger rounds at headline-grabbing prices. HappyCredit, a startup initiated by Fintech, collected Rs. 5 crores in a pre-seed round for the company’s expansion. In the funding participation of owner and foreign-based investors was involved. The owners, Jitendra Kumar’s and Ashish Virmani’s main aim was to use the fresh fund to introduce new products in the market, creating new talent and boosting the company’s growth.

With the lead and one of the most valuable startups in the segment of Edtech is Byju’s, with fundraise deals of approx. $1 billion and now ready to raise funds through IPO next year.

Why are most Indian Startups suddenly going Public in 2021?

According to the data of Venture Intelligence, almost 65 Indian companies have been transformed into unicorns, with 28 being born in the year 2021 itself. According to Shweta Bhatia, partner and head of technology investments for India at Eight Roads Ventures, “While global investor interest in leaders in the Indian consumer tech landscape has consistently been strong; we are now seeing multiple software businesses coming out of India.”

The shifts towards digital options of local businesses, even the small ones, benefited them to reach customers, and expanding their branches through funding have given the country’s startups global recognition.

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