Surge in VC Exits At Startups

Venture capital fund exits in Indian startups surged in 2021, says a report. Here’s why.

Venture capital fund exits in Indian startups grew over ten-fold to surge past $14 billion in 2021 over the previous year, a recent report by Bain & Company in collaboration with Indian Venture and Alternate Capital Association finds. This was across secondary transactions and initial public offerings (IPOs), with the latter accounting for a significant 40% of the total exit value.

A major share of the exit value was constituted by three exits last year: BillDesk acquisition by PayU, Paytm and Zomato IPOs, a Financial Express report said. Secondary and strategic sales from over 60 deals accounted for the remaining 60% of the overall exit value, equaling $8.7 billion. One of the reasons for this has been the surge in interest from investors globally.

The growth also comes in the light of subdued activity as a result of the pandemic prior to 2021. The value of exits in 2019 and 2020 stood at mere $4.4 billion and $1.4 billion respectively.

Investment in startups in the country has also seen an uptick, with players in consumer tech, fintech and software as a service (SaaS) being particularly dominant. The boom continues this year with 13 startups already turning unicorns so far.

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