Investors say Indian startup funding could get even hotter after record Q3

Tailwinds and early-stage activity hint at more good times to come

Any subscriber to the Daily Crunch newsletter is familiar with just how often Indian startups take point in our coverage of emerging technology companies around the world. The country’s prominence has perhaps also risen as the Chinese venture capital market evolves in the face of a changing regulatory environment.

A number of Indian companies have recently gone public or started the IPO process. Those exits have proved more than merely useful for recycling capital into the Indian market; they’re showing global investors of all stages that startups in the country can go from seed to redwood.

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The result of a long ramp in venture capital activity since COVID-19-induced lows in early 2020 is an Indian startup market that is going flat-out bonkers. Venture capital data from the country is, even for 2021, surprising.

To get our heads around just what’s going on in the country, The Exchange got ahold of GV Ravishankar, a managing director at Sequoia India, and Kunal Bajaj, head of Capital Network at Blume Ventures.

Just how active is the Indian market today? Ravishankar said that India is “undeniably going through one of the best periods for startups with respect to their ability to raise financing on a continuous basis.”

The VCs helped us understand what’s driving Indian startups to not merely set new records in terms of capital attracted, but accelerate prior gains to totals that we may not see again for some time after the current business supercycle comes to a close.

New records for India’s startup market

When Q3 venture capital data touched down, The Exchange got busy digesting hundreds of data points. Diving into fresh quarterly data is nearly as good as a spanking-new S-1 filing in terms of filling in gaps in our market comprehension.

But rare is the chart that makes us actually shout out loud: Wait, what?! Such was the case with CB Insights’ Indian data set concerning quarterly venture totals over time: