How much money did startups raise in July?   |  Photo Credit: BCCL
New Delhi: Startups in India received $487 Million in venture funding across 42 deals for July 2020, according to data from Venture Intelligence.
The number is a little higher than the $452 million funding in June but it’s just half of what startups received in July last year ($871 mn), underscoring the bleak funding environment.
Top VC Investments in July 2019 included Vedantu, which raised $100 mn, followed by Freshworks, Zolo, Toppr, and JetSynthesys.
In terms of rounds, early-stage funding fared better, with 19 deals at the seed stage. There were 5 Series A deals, 6 Series B deals and 4 Series C deals. Matrix Partners was the most active investor and education was a sector favourite.
« In the current situation, the key signal to watch out for – among Growth Stage deals – is where New Investors are stepping up to invest in startups. By that filter, the investment led by Coatue in Vedantu in July, following that of Bond Capital in Byjus in June, shows Edtech is leading the way. The other larger deals being witnessed are typically inside / bridge rounds or secondary transactions, where existing investors are getting replaced (and no new money is being invested into the company). » said Arun Natarajan, founder, Venture Intelligence.
Natarajan further said the perk up in Early Stage (especially Seed and Series A) investment activity in recent weeks – reflects both the sufficient « Dry Powder » availability in the Indian VC ecosystem and the return of confidence and « Back to Business » attitude among investors in this segment.