In 2019, India-based tech startups raised an unprecedented amount of money. According to Tracxn, startups raised $14.5 billion, compared to $10.6 billion in 2018. Zooming out, the research firm reports, “the decade has seen an impressive 25x growth from a tiny $550 million in 2010 to $14.5 billion in 2019.”

Capital is flowing more freely now than ever before in India, and valuations are trending upwards. The country’s budding startup ecosystem is attracting venture capitalists from all over the world. Nearly 500 international investors committed funds this year, because companies are tackling big problems in new ways.

In 2014 and 2015, many Indian startups focused on replicating the success of eCommerce solutions that were successful in the West. Now, founders are branching out into a variety of sectors with innovative business models, services, and products. To put it in another way, disruption is brewing in the East.


India’s Investment Highlight Reel

The biggest winner in India’s record-breaking year was a startup in the lodging space. Oyo raised $1.5 billion on its own. Three logistics businesses, Elastic Run, Delhivery, and Ecom Express, raised just north of $641 million. Education apps, fintech platforms, and trucking marketplaces also drew significant investor interest.

Much of the year-over-year increase occurred in the angel or pre-Series A rounds. Early-stage companies raked in $6.9 billion in funding, which was nearly two times more than the prior year. In total, 128 startups were acquired, and four went public.

The investor of the year award goes to Sequoia Capital. The firm invested in over 50 startups. Goldman Sachs, Facebook, and Twitter also entered the game with sizable contributions to Indian businesses.

Overall, India’s tech startups raised capital from over 800 investors in nearly 2,000 distinct fundraising rounds. One-fourth of those rounds were Series A or later. In 2017, only 9 deals landed between $25 million and $100 million. This year, 81 startups raised funding in this range, and 9 achieved unicorn status.

Global Startup Trends for the New Decade

Going into the new decade, it’s easy to see which technologies and industries are most appealing to investors. Artificial intelligence, blockchain, and natural language processing are just a few examples of disruptors that will continue to shift the status quo in huge ways.

In retail and eCommerce, voice technology will take off as smart speakers become more sophisticated at understanding human language. Blockchain developers are in extremely high demand as early-stage businesses look to automate transactions, contracts, and security protocols. The Internet of Things (IoT) is also on the verge of exploding. By 2022, more than a billion devices will be able to gather and send information over the internet.

Additionally, cloud computing will enable so much information processing to occur on the edges of interconnected networks. Smart cities, autonomous vehicles, and augmented reality will all take massive leaps forward. Big data will continue to reveal valuable insights to individuals and organizations about the world around us.

Fortunately, large corporations aren’t the only entities with the resources and talent to tackle today’s biggest challenges. There is tremendous opportunity ahead for ambitious startups to impact how we live on a daily basis. And it looks like Silicon Valley isn’t the only place producing the world’s next game-changing businesses.