Talking about the report, Arpan Sheth, partner, Bain & Company said, “Despite the global economic climate, India’s start-up and VC ecosystems continue to thrive as investors take a longterm view based on the country’s growth potential. We go into 2020 with record-high levels of dry powder, counter-balanced with caution and an underlying optimism in the long-term potential for the ecosystem.”

The report highlighted that about 80% of VC investments in 2019 were concentrated in four sectors: Consumer tech, Software/SaaS, Fintech and B2B commerce and tech. Consumer tech continued to be the largest sector accounting for approximately 35% of the total investments with several scale deals exceeding $ 150 million.

“The Indian VC industry had a landmark year in 2019. However, India-focused VC investments raised fewer funds this year, the fundraising outlook for 2020 remains positive among both LPs and GPs. Following the brief moderation that we saw between 2015 and 2017, the VC industry in India has been in a renewed growth phase and we see that continuing," Sriwatsan Krishnan, partner, Bain & Company said.

Pointing the continuous growth in the startup ecosystem of the country, the report maintained that between 2012 and 2019, the number of start-ups in India increased by 17 per cent each year, while funded startups increased faster at 19 per cent CAGR in the same period. Currently, of almost 80,000 start-ups in India, only about 8% are funded, indicating room for investments.