For Indian startups, 2018 has been a year of bouncing back as venture capital funding doubles
Indian startupshave raised more money through VC fundingsand financing, beating now listed companies that raised capital via IPOs this year.
- While the startups raised nearly ₹449 billion in the
venture capital(VC) funding rounds in 2018, nearly 25 companies listed on stock exchanges in India garnered ₹341.17 billion from investors.
- Indian market regulator SEBI has been making amendments in regulations to provide
IPOas a substitute to VC funding for startups.
Comparing the total amount raised by the companies under the two segments — startups getting funding under the Venture Capital (VC) and other companies listed under IPOs — stats show that while the startups raised nearly ₹449 billion in VC funding rounds in 2018, nearly 25 companies listed on stock exchanges elevated with ₹341.17 billion from investors.
In 2017, the companies listed under IPOs raised over ₹772 billion. On the other hand, the startup VC investments were found to be comparatively low, raising ₹243.47 billion.
The biggest company under IPO, Bandhan Bank, raised ₹44.7 billion from investors this year.
In fact, startups are forging ahead with nearly twice the Venture Capital ( VC) funding this year, as compared to 2017. Separately, the Security and Exchange Board of India (SEBI) has recently floated changes in the existing regulations for the startup ecosystem. With this, the regulatory body is looking to provide IPO as a substitute to VC funding.
However, the market regulator will release detailed guidelines by January 2019. It is also planning to launch a startup platform, with inputs from Bombay Stock Exchange (BSE), for its listing process across sectors — including Information Technology, e-commerce and biotech among others.
India, which is the third -largest for startup ecosystem in India, added 8 new unicorns to the list this year, adding up to 18 in total. Private companies with a valuation over $1 billion are the ones making to a ‘unicorn club’.
Under the venture capital funding, India’s recent unicorns raised ₹70 billion in its latest round of fundings from international investors such as Naspers and SoftBank among others. In fact,
India’s largest online learning service is all set to become the 4th highest valued Indian startup with a ₹254 billion valuation
The Indian government may roll back a tax on angel investments that is said to be hurting the country’s startup ecosystem
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