Investments in Indian tech startups grew 18% in 2019; Delhi-NCR, Bengaluru account for lion's share of funds: Report

New Delhi: Investments in Indian tech-enabled startups grew 18 percent to $14 billion (about Rs 99,400 crore) in 2019, with Delhi-NCR and Bengaluru accounting for a lion’s share of the funds, a report by research and consulting firm HexGn said.

India has performed better both in the number of deals as well as funding in value terms with companies like Oyo, Paytm, Ola Electric, Udaan, Bounce and Delhivery raising large rounds, the report said.

“While the number of startup deals in India fell by only 15 percent (down 27 percent globally and in Asia), funding in value terms in startups rose by 18 percent (compared to a 22 percent decline globally and 56 percent fall in Asia),” it added.

Globally, the total funding for technology start-ups is estimated to have dipped by 22 percent to $293 billion from $375 billion in 2018, with a 27 percent drop in deals, the report said.

In Asia, funding dropped by 56 percent to $83 billion in 2019 from $158 billion in the previous year.

HexGn analysed over 60,000 deals and 1 million data points for the report.

Delhi-NCR attracted $7.4 billion in funding, while Bengaluru-based start-ups received $4.4 billion in 2019, it said.

E-commerce has customarily been the sector to attract the most funding in India and in 2019 too, it continued its strong march and attracted $2.2 billion in funding, the report added.

Transportation and logistics start-ups attracted funding of over $2.4 billion, while fintech companies raised over $4.1 billion, given the considerable potential of the sector and thrust towards transparency and digital payments from the Indian government, it noted.