Bengaluru gets $10.7bn VC investments
Global tech investors continue to put large sums of money into Indian tech companies despite a challenging global economic climate, with a recent report conducted by Dealroom and London & Partners revealing that India ranked 4th globally with US$24.1 billion worth of Venture Capital (VC) investments in 2022.
Further analysis from the research showed that US$10.7 billion of that investment went into companies based in Bengaluru, with the Indian tech city joining the likes of London and New York in the top 5 hubs for tech VC investment last year.
The leading sectors that contributed to India’s strong VC funding performance were education, food, media, fin-tech and transportation.
Bengaluru accounted for five of the top 10 deals for Indian tech companies in 2022 – Byju’s (US$800m) Swiggy (US$700m), Dailyhunt (US$805m), Polygon (US$450m) and ShareChat (US$225m).
Maharashtra produced two mega deals for: ElasticRun (US$300m) and Xpressbees (US$300m), with Gurugram based Delhivery (US$300m) making up the top 10.
In addition to Bengaluru, other global cities that saw impressive amounts of funding included the Bay Area (US$72.4bn), New York (US$28.3bn) and Boston (US$20bn).
Outside of the United States, London emerged as the fourth largest tech hub for VC funding and by far the largest in Europe, with the UK capital’s tech firms receiving a total of US$19.8 billion.
At a national level, the top three countries for tech investment in 2022 were the US$233.3 billion followed by China (US$48 billion) and the UK (US$29.9 billion).
“It is encouraging to see both Bengaluru and London among the top five cities for global tech VC investments, despite the challenges and economic instability we’ve seen in the last few years,” said Hemin Bharucha, Country Director for India at London & Partners.
“Both these resilient cities are leading hubs for innovation, technology, and entrepreneurs. It’s also exciting to see the UK and India feature in the top 5 countries for tech investment, offering further proof that there are lots of opportunities for technology companies to do business across both regions.
“The fact that London is the number one city in Europe for tech investment demonstrates why Indian companies should consider London as a top place to expand internationally,” Bharucha said on 18 Jan 2023.
According to the data findings, total 2022 global VC funding was down 33% at US$485.2 billion from the 2021’s record of US$723 billion, a year which saw an unprecedented surge in economic activity post the opening up of COVID-restrictions. However, the 2022 numbers were 28% higher than the 2020 global investments of US$348.9 billion, and any other year except from 2021. fiinews.com
