JOB CREATION BY INVESTED STARTUPS IN INDIA 2020
The year 2020 emerged interesting and intriguing in many ways in the investments, start-ups and job growth dimensions. On the sheer count of Enterprise and investment and debt deals, 2020 overtook 2019 with 885 deals compared to 863 in 2019. Despite the growth in deal counts 2020 ended a shade shy than 2019 on the total transaction size of the deals. While 2019 recorded 12.6 Bn$ in total deal size, 2019 saw deals worth 10.5 Bn$ being reported. However, if we add the two mega deals of Reliance Jio and Reliance Retail, 2020 takes a clear lead over 2019 with a grand total of 16.2Bn$ in total deal size.
| 2019 | 2020 | |||||
| Deal Type | Deal Count | Investment In Mn$ | Average Ticket Size | Deal Count | Investment In Mn$ | Average Ticket Size |
| Series A | 143 | $731 | $5 | 101 | $1,022 | $10 |
| Series B | 72 | $1,137 | $16 | 62 | $828 | $13 |
| Series C | 39 | $875 | $22 | 42 | $871 | $21 |
| Series D | 30 | $1,805 | $60 | 18 | $853 | $47 |
| Series E | 12 | $438 | $37 | 9 | $448 | $50 |
| Late Stage | 19 | $3,410 | $179 | 11 | $2,592 | $236 |
| Total | 315 | $8,396 | $27 | 243 | $6,614 | $27 |
Seeding Galore
The growth in deal count of 2020 was largely lead by an increase in the number of Pre-Series A, Seed, Strategic Investment and Bridge deals. Between the Pre-Series A and Seed deals a total growth of close to 70 investment deals were recorded in 2020. Despite the Pandemic and the Lockdown scenarios Investors seemed to have reached out to the early Start-up stage business ventures. The headcount addition and job creation movement of these early-stage investments will be seen in the current year 2021.
First published in Economic Times – 5th February 2021
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