Indian tech-led startups attract funding worth $2.5 billion in first quarter of 2020, up 14% on-year: Report

New Delhi: Indian tech-led startups attracted funding worth $2.5 billion in the first quarter of 2020, a 14 percent rise compared to the same period last year, a report by research and consulting firm HexGn said. However, funding in startups on a global level dropped by 15 percent to $60 billion in the quarter as compared to the year-ago period, the report said. It added that the number of startup deals fell by over 56 percent to 4,100. [caption id=“attachment_2850094” align=“alignleft” width=“380”] Representative image. ThinkStock[/caption] HexGn said the numbers are an early guidance and there could be changes as more companies make announcements on funds received. It also anticipated delays in sharing of such information amid the coronavirus outbreak that has disrupted businesses worldwide. The report said the first quarter of 2020 has been very challenging for the global startup community, where even the US saw its tech startup funding dip by 10 percent to $38 billion. The top deals included those by Beike from China ($2.4 billion) and $1.2 billion for Gojek. Click here to follow LIVE news and updates on stock markets Bad news continues to pour in for China, where funding in Q1 dropped by a massive 45 percent from the previous year. The drop is even steeper when compared to the first quarter of 2018, plunging by 63 percent. “With the election year in America and sharpened rhetoric, things could get worse for China, before they can get any better," it added. The report noted that Indian startups seem to have bucked this global scenario till now. “The number of startup funding deals in India has grown by 30 percent in the last quarter to 277, from 210 in Q1 of 2019. Another good news is that the Indian funding in the last quarter was not dominated by mega-billion dollar-plus infusions,” it added. The most significant ones included BYJU’s $200 million funding round, while FirstCry, Zomato, Swiggy, CureFit, Unacademy, and Bounce each grabbed over $100 million in startup funding in the first quarter this year. “Post COVID-19 too, Indian startups stand an excellent chance to capture a piece of this pie. With Facebook pumping in $5.7 billion in Jio, India is high on investment radar. Investors are getting attracted to a healthy breed of homegrown entrepreneurs, who have gone through the cycle of entrepreneurship,” the report said. It added that supportive policies by the Indian government and increased availability of local capital are giving further impetus to the startup ecosystem.