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Third Quarter Witnessed Highest Funding in 2019

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Team StartupcityQ3 portrays wide recognition for startups by investors. The Indian startups raised around USD 2.5 billion in the third quarter if the fiscal year 2019. This is claimed as the highest find raised this year. This showcases the interest of investors to fund potential startups and create a win-win situation.

The records of September shows that the companies raised USD 2.5B which is said to be 25 percent more than the fund raised in first and second quarters which was USD 2 billion and USD 2.13 billion respectively. The increase in deals,


volumes have decreased during the same period. From 160 deakls in Q1 to 117 in Q3. The fact to be noticed is that there is a very large amount fklowing but to very few startups.

This growth is a sign for investor’s assertive nature on Indian startups despite the economic crisis that is hovering.

Livemint reported Arpan Sheth, Partner, Brain & Co saying,“ Investors are generally long on India. Despite the slowdowm concerns, venture capital investors are taking a seven year view and expect consumption-led growth in that period. There have also been significant exits and liquidity created for investors , which brings even more capital back in.”

The deals in the quarter includes B2B marketplace Udaan, which received $414M from Altimeter Captial, Hillhouse Capital and DST Gloabal. Ola Electric raised $250M by Softbank Group, Rebel Foods.
Karthik Reddy, Partner, Blume Ventures said,“Once the company reaches $ 100 million in valuation, large ticket investors private equity fun, overseas VCs from US and China, etc are happy to come in. Earlier this happened when valuations crossed $250-300 million that select strategics like Alibab, Tencent, Naspers, used to come in.”