BENGALURU: The start-up ecosystem in India challenged with liquidity concerns due to the Covid-19 pandemic, is gradually attracting investments from overseas and homegrown funds. These firms have raised nearly $550 million this week with edtech leading the fundraising spree followed by segments like house décor, food delivery and online dating.
Even as start-up founders and homegrown investors are wary of Chinese funding amidst growing Sino- India tensions, China’s AliBaba has reportedly put off its investment plans for India for the next six months after the Indian government modified its Foreign direct investment (FDI) regulations for the border sharing countries.
Despite the Chinese investments slowing down, the funding have picked up pace post July.
Industry observers say that although Japan and the US continue to invest heavily in India, a growing interest is seen from countries like UAE, UK and other developed economies.
Japan’s tech investor, SoftBank Group made a re-entry in the Indian start-up funding ecosystem, leading with a $150 million funding round in edtech start-up, Unacademy.
Mumbai-based Eruditus, which supports quality education for the underserved population raised $113 million in a Series D funding round in which Facebook CEO Mark Zuckerberg and Priscilla Chan Zuckerberg’s initiative also participated.
Overall, the edtech sector in India has raised more than $1 billion funding from investors during the pandemic and now the funds are gradually eyeing startups in other sectors too.
Earlier this week, home interior major Livspace announced they have raised $90 million in a Series D round led by Kharis Capital and Venturi Partners, which will be used in expanding the footprints and to target profitability.
Besides, Zomato’s reported $150 million funds raise from Alibaba’s Ant Financial hit the roadblock after the Chinese investor said in a stock exchange filing that it is evaluating its funding in the wake of changed regulations in India.
However, Singapore’s investment firm, Temasek holdings has invested $62 million in Zomato as the start-up embarks on a profitability model to launch its IPO.
New set of investors
A growing interest is seen from nations like UAE, UK and other developed economies, say experts.