ML | Investment Sizing Report | Feb 2020 | India
release date - Mar 07, 2020

$1642.8  million

98

firms

239 founders

274 

investors

51 purposes

2%

women only founding teams

18.7%

mixed gender founding teams

79.3%

men only founding teams

the week on week funding heatmap for February 2020 - India

men only founding teams outnumber mixed gender & women only founding teams both in terms of total funds raised and no. of deals closed this month.

Week 7, otherwise the Valentine's week witnessed the peak (funding volume & no. of deals reported)

interpreting the heat map

  • data is grouped by week number of 2020 (when deal was reported)

  • map is categorised by gender of the founder/founding team

  • size of the square represents total number of deals reported during the week

  • colour represents total funding volume - all deals combined during the week

  • deal volume represents sum of all deals reported during the week

  • the legend depicts the outer limit of the range of (deal volume  in million USD)

 

$1.6 billion  raised by 98 firms with 51 disclosed purposes with deal size varying between $20,000 to $296MDeal details are presented in the dataset below. deal size for 19 deals could not be ascertained by the time research closed for this report.

as more information on undiclosed deals become available, analysis will be updated

 

deals transacted in the Indian startup ecosystem in February 2020

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 down by 50

The total deal volume (tracked disclosed deals) in February stood at $1642.8 million, down by close to 50% of the deal flow recorded in the previous month. Women only founding teams raised $32 million, close to 2% while mixed gender founding teams garnered  18.7% , of total funding reported during the month. 83 of the 98 deals reported went to men only founding teams

 

average age of firms led by mixed gender founding teams raising funds this month, was half that of firms led by only women entrepreneurs. average age of firms led by male founders that closed deals this month was 5.4 years

Funding Rounds

  • early stage financing was dominant in terms of no. of deals transacted, as expected but total quantum of angel/seed/pre seed stage deals stood at 17,  which is less than half the number of deals reported in the previous month. 

  • enterprises led by women only founding teams were represented in corporate round and in Series B.

  • late stage deals completely belonged to men only founding teams

  • debt financing was at $44.4 million spread across 7 deals

  • series E financing topped in terms of the total stagewise funding at $406 million spread across 2 deals closed by firms led by men only founding teams

  • angel/seed/pre seed stage accounted for $9.3 million dominated by men only founding teams, who closed 16 out of the 17 deals in this stage

 

Top of the line cities in February 2020

 
  • no surprises here with Bangalore continuing to dominate the Indian startup investment ecosystem, both in terms of number of deals and the total funds raised 

  • the top five cities accounted for  73% of all deals closed and almost 83% of total funds raised.

  • Bangalore with  25.5% of all deals & 37% of total funds raised tops both lists 

  • While Pune does not feature in the top cities by number of deals, it ranks second on totals funds raised. At $301 million Pune falls short by more than 50% of Bangalore's total fundraise of $610million

  • Women only founding teams closing deals were from Mumbai & Kolkata, one each

  • Mixed gender founding teams came from  - Bangalore, New Delhi, Gurugram, Mumbai & Coimbatore

  • Indian enterprises with main offices (or HQ) both in India and US also closed deals in February as evident from San Francisco appearing on both lists as one of the top cities attracting investments

  • Deals were also closed in Ahmedabad, Ghaziabad, Jodhpur, Jaipur & Kochi witht one deal in each of these cities. Chennai was the other metro city with at least 3 deals reported.

deal size comparison by gender of founders

 

the (disclosed) purpose behind the fundraise

  • Across all gender combinations of founding teams, three purposes topped the list.

  • 33 deals included strengthening/enhancing tech stack for product - the highest number of deals against a particular purpose recorded in Feb 2020

  • With 24 deals product/platform development  was next followed closely by hiring new talent featured in 22 deals

  • With 30 deals, expansion in Indian market was the second most frequently quoted purpose overall but was not reported by women only founding teams 

  • The top most purpose amongst the set of deal purposes exclusively reported by firms led by men only founding teams, was expansion of community (including that of sellers/partners/tutors etc on the platform)

  • Investing in R&D capability featured at top of the deal purposes excllusively quoted by mixed gender founding teams.

  • Expansion in tier 2 and tier 3 cities in India were also exclusively reported only by firms led by mixed gender teams

  • We did not find a single purpose that was exclusively reported by firms led by women only founding teams

 
 

investors & founders 

  • male founders outnumber mixed gender founding teams while women only founding teams remain a minority as reported in January 2020 also

  • on an average firms led by men only founding teams had 2 founders, those led by mixed gender team had 3 founders but for those led by women only founding teams average founding team comprised 1 founder only

  • 202 founders are part of men only founding teams while 35 founders are part of mixed gender founding teams

  • 234 investors closed deals with firms led by men only founding teams while at least five investors participated in the two deals with women only founding teams

  • 35 investors closed deals with mixed gender leadership teams

Methodology

ML - Investment Sizing - Monthly

  • this monthly report includes disclosed deals reported during the course of Feb 01 - Feb 29, 2020

  • all reported funding rounds are accounted. Rounds that were not specifically attrinuted to a stage is classifed under Not Attributed. 

  • funds received from corporate (parent) has also been included 

  • India deals includes mainly investments in Indian startups (some of them operate with two HQs - one in India and the other in a different country, usually the other country is USA); the data can also include (rarely) investments made in firms with HQ in other countries but with India as a key existing or potential market or if the funds raised were specifically to expand presence in India

  • the analysis includes deals that have been reported and amounts that have been disclosed and/or gathered by myrna labs directly through a wide variety of sources which includes corporate website and press releases, regulatory filings, media reports and other online and offline sources.

  • additional insights generated during the period  - for instance gender intelligence on investors involved in the transactions of Feb 2020, is shared with clients only

  • the purpose tag whenever mentioned against an acquisition/merger refers to the purpose of the acquirer and not the acquired. For all other deal types, the purpose tags refers to the purpose of the fund recipient/investee firm

Disclaimer : The information in this report is issued by myrna labs and is intended for information and discussion and is not intended, and should neither be interpreted as investment advice nor an offer to acquire units in any firm.

 

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