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Chronicles

The story behind the story

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Report: Indian startups raised a record $14.5B in 2019, up from $10.5B in 2018 and $550M in 2010; Sequoia, Accel, and Tiger Global were the most active VCs

As the decade is coming to an end, it has seen an impressive 25x growth from a tiny $550 million in 2010 to $14.5 billion in 2019 …

Business Standard Peerzada Abrar

Context & Ripple Effects

The 2019 close caps a decade-long build: India went from nearly $10B raised in 2017 against $4.4B in 2016 to a then-record $14.5B in 2019, with Sequoia, Accel, and Tiger Global accounting for the most active checkbooks across those years.

What makes this retrospective more than a year-end stat is what came after it in the same corpus: the 2019 peak was surpassed within two years, as Indian startups drew ~$36B in 2021 with SoftBank deploying $3B+ and Tiger Global again among the most active investors.

First-order effects

  • Sequoia, Accel, and Tiger Global end the decade holding the densest deal pipelines in Indian venture, giving them first look at the country's breakout companies going into 2020.

Second-order effects

  • Tiger Global's decade-long cadence in India set the template for its COVID-era aggression elsewhere — the same corpus credits that pace with rapidly minting unicorns, and shows it extending into leading Cerebras' ~$1B Series H and Nothing's $200M Series C.

Third-order effects

  • The pattern holds a full cycle: the funding surge that peaked at ~$36B in 2021 was followed by markdowns, including Tiger Global cutting Superhuman's valuation by 45% in September 2023 — evidence that record deployment years in this market are followed by repricing, not steady-state growth.

The trend: Indian startup funding is running a classic boom-and-reprice capital cycle, with each record year concentrating more of the market in a handful of global funds — Tiger Global chief among them.

Discussion

  • @buzzindelhi Arvind Gupta on x
    Indian start-ups raised a record $14.5 bn in 1185 funding rounds this year, compared to $10.5 billion in 2018 and $10.4 billion in 2017. India has 24 ‘unicorns’ and 155 ‘soonicorns’ #StartupIndia https://www.business-standard.com/ ...
  • @sumanthraman Sumanth Raman on x
    Never ceases to amaze me how so much money is pumped in to companies that hardly ever make profits. Valuations are all that seem to matter and the show seems to be on the road for ever. https://twitter.com/...
  • @elaine_dsouza Elaine D'Souza on x
    Indian start-ups raised a record $14.5 bn in 1185 funding this year. It is said ‘The decade has seen an impressive 25x growth in terms of the total funding raised by the startups.’ Read more: https://www.shorturl.at/qAJSW @bsindia https://twitter.com/...
  • @investindia @investindia on x
    #InTheNews In 2019, Indian startups raised USD 14.5 Bn in 1,185 funding rounds out of which 459 were Series A & last-stage #investments. One of the biggest funding rounds was raised by @oyorooms, followed by @Paytm. Read more: https://www.business-standard.com/ ... @startupindia …