iNDICA NEWS BUREAU-
Global tech venture capital (VC) firms continue to put large sums of money into Indian tech companies despite a challenging global economic climate, a recent report conducted by Dealroom and London & Partners revealed.
India ranked fourth globally with $24.1 billion worth of VC investments in 2022, the report said.
According to official data, total 2022 global VC funding ($485.2 billion) experienced a 33% dip from the record levels seen in 2021 ($723 billion), a year which saw an unprecedented surge in economic activity post the opening up of COVID-restrictions.
However, the 2022 numbers were 28 per cent higher than the global investments in 2020 ($348.9 billion) and any other year except from 2021.
From the Indian total, $10.7 billion went into companies based in Bengaluru, with the Indian tech city joining the likes of London and New York in the top five hubs for tech VC investment last year.
The leading sectors that contributed to India’s strong VC funding performance were education, food, media, fintech and transportation.
Bengaluru accounted for five of the top 10 deals for Indian tech companies in 2022: Byju’s ($800 million), Swiggy ($700 million), Dailyhunt ($805 million), Polygon ($450 million) and ShareChat ($225 million).
Maharashtra produced two mega deals for: ElasticRun ($300 million) and Xpressbees ($300 million), with Gurugram based Delhivery ($300 million) making up the top 10.
In addition to Bengaluru, other cities that saw impressive amounts of funding included the Bay Area ($72.4 billion), New York ($28.3 billion) and Boston ($20 billion).
Outside of the United States, London emerged as the fourth largest tech hub for VC funding and by far the largest in Europe, with the UK capital’s tech firms receiving a total of $19.8 billion.
At a national level, the top three countries for tech investment in 2022 were the US ($233.3 billion) followed by China ($48 billion) and the UK ($29.9 billion).
Hemin Bharucha, Country Director, India, London & Partners said, “It is encouraging to see both Bengaluru and London among the top five cities for global tech VC investments, despite the challenges and economic instability we’ve seen in the last few years. Both these resilient cities are leading hubs for innovation, technology, and entrepreneurs.”
He added, “It’s also exciting to see the UK and India feature in the top 5 countries for tech investment, offering further proof that there are lots of opportunities for technology companies to do business across both regions. The fact that London is the number one city in Europe for tech investment demonstrates why Indian companies should consider London as a top place to expand internationally.”
India ranked fourth for 2022 tech VC investments: New report from Dealroom
