Startups in India have raised record-breaking $11.3 billion in 2019

There are still two months left in the year 2019 to go but unlisted startups in India have already broken the record of collecting capital flow in the country for a year with raising $11.3 billion in 2019 which is a decent hike from $10.5 billion raised in 2018 as reported by the research firm Tracxn.

This rise in the capital raise will probably a booster for startups in the country which has seen a really dark phase of funding in the year 2016 when the collection was dropped to $4.3 billion from $7.9 billion in the previous year.

According to Tracxn, startups that provide ease for consumers including in Financial services like Paytm have attracted the most venture capital reaching about $8.2 billion. Retail startups bagged about $2.3 billion and Enterprise services startups collected about $1.5 billion.

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Dev Khare, a partner at VC fund Lightspeed Venture Partners says that in 2014 and 2015, startups were all focused on building e-commerce solutions and following the ideas that worked in the western countries, But today the capital venture is more collected by the startups that are working in a wide range of solutions.

He adds that the entrance of Mukesh Ambani’s Reliance Jio in the telecom sector which helped in creating a low-cost mobile data availability in the country, the introduction of easy taxation system GST and UPI payment infrastructure has also helped opened doors for startups to try and develop in a wide range of categories.

Demonetisation in late 2016 reduced the cash flow in the country which led to a sudden explosion in the demand for services like digital payment options and mobile wallets which gave a massive opportunity for local startups to innovate and grow.

Financial service firm Paytm which currently has more than 200 million registered users in India has raised more than $2 billion in this year to date while Google Pay (UPI-based) has collected more than 67 million active users in just two years.

17.3% of startups that raised capitals in the first half of the year 2019 were either led or co-led by women as per The Morning Context reported, last year only 10% of startups mentioned women as founder or co-founders. In this year, 842 startups participated in financing rounds while in 2018 this number was 924 and 1,141 in 2017.

It is expected that by the end of the year some startups may raise some more financial rounds and the numbers for Zomato, Swiggy, and Paytm may reach $3 billion.