Bengaluru claims 5th spot for tech funding last year, joining London, New York, the Bay Area and Boston in the top 5 cities globally
Education, Food, Media, Fin-tech, Transportation and Real Estate top sectors for investment into Indian tech companies in 2022
Bengaluru-based Dailyhunt, Byju’s, Swiggy, Polygon and ShareChat; Maharashtra’s ElasticRun and Xpressbees; and Gurugram’s Delhivery among top 10 deals accounting for India’s VC investments in 2022
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 $24.1B worth of VC investments in 2022. Further analysis from the research showed that $10.7bn 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 ($800m) Swiggy ($700m), Dailyhunt ($805m), Polygon ($450m) and ShareChat ($225m). Maharashtra produced two mega deals for: ElasticRun ($300m) and Xpressbees ($300m), with Gurugram based, Delhivery ($300m) making up the top 10.
In addition to Bengaluru, other global cities that saw impressive amounts of funding included the Bay Area ($72.4B), New York ($28.3B) and Boston ($20B). 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 $19.8B. At a national level, the top three countries for tech investment in 2022 were the US $233.3B followed by China ($48B) and the UK ($29.9B).
Hemin Bharucha, Country Director, India, London & Partners said, “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. 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.”
According to the data findings, total 2022 global VC funding ($485.2B) experienced a 33% dip from the record levels seen in 2021 ($723B)-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 global investments in 2020 ($348.9B) and any other year except from 2021.