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Early indications from Q3 show Indian startup ecosystem is becoming a gangbuster – TechCrunch


Although it appears to be lagging behind its main Chinese rival – for now

Ola Electric announced this morning it closed a $ 200 million round at a $ 3 billion valuation. EV company’s parent company, Ola, is best known as an Indian ridesharing platform. Ola himself has raised more than $ 4.5 billion to date, according to data from Crunchbase, while Ola Electric is now above the $ 500 million fundraising mark, if we do our calculations correctly. morning.

The fact that none of these numbers really surprised you indicates how active the Indian startup ecosystem has become. It seems that every daytime TechCrunch is covering yet another new nationwide unicorn, or at least a tidy nine-figure trick as a consolation prize.

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I was curious what the data from the start of Q3 might tell us about India’s recent venture capital performance. I’m also interested in whether all the noise coming from the country’s startup market was adding to anything. So we do a little dive into the data.

We’ll take a look at historical data for India and then do some quick and rough data extractions to see where the country is heading at the end of the third quarter. And for comparison, we’re going to wrap up historical and current data from the Chinese startup market to see how India ranks.

Venture capital in India

When The Exchange looked at Q2 2021 data for the global venture capital market, we relied heavily on Q2 data from CB Insights. That dataset showed Indian startups raised $ 6.3 billion, a quarterly record.

Today, we ran India-focused queries in PitchBook, keeping the data set limited to VC-funded companies headquartered in the country. We have drawn numbers Q2 and Q3 for this year, although of course number Q3 is not quite finished; there are a few hours left.

The PitchBook query for Indian startups’ fundraising activity in the second quarter rose a little above ($ 6.81 billion) where CB Insights indexed the data. This PitchBook Has More For India Q2 In A Few Months after Not surprisingly, CB Insights closed the books on its Q2 report. Venture capital data is slow and quarters tend to fill up over time.

Regardless, with figures of $ 6.3 billion and $ 6.8 billion for Indian venture capital fundraising in the second quarter, we have a good basis for comparison with the third quarter. . Which, according to PitchBook data, includes more laps and far more capital. Indeed, Indian startups raised $ 17.23 billion, reports PitchBook, through some 459 transactions in the third quarter.

These numbers will move as PitchBook adds what’s left of the quarter and cleans up the data. But it doesn’t matter if we prefer the $ 6.3 billion figure or the $ 6.8 billion second quarter figure, it appears that Indian startups completely smashed previous records for venture capital in the third quarter.

What does this tell us? That India is precisely as madly busy as we thought. And let it come for China.

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