DNA Money Edit: Why Indian start-ups draw big bucks

A fresh funding round at Byju’s saw the start-up raise a massive $540 million at $3.6 billion valuation, making it the fourth most valuable start-up in India, behind Paytm, Ola and OYO Rooms. What has brought cheer to India’s fledgling Start-up Inc is the fact that it is drawing a substantial buyer interest from abroad. For instance, Byju’s, which is set to grow revenues three times to Rs 1,500 crore, has enhanced its valuation significantly, way beyond the promoters’ wildest expectations. 

2018 has turned out to be a rocking year for start-ups in the country. A total of 118 acquisition deals were announced, with the average size of deals going up several times, while the numbers may have seen a drop. Walmart’s $16-billion purchase of Flipkart has set the stage on fire. The $40 million purchase of Tapzo by Amazon and $30 million buy of Walnut by Capital Float are among the other big deals.

Among investors, SoftBank has been the most prolific. Having made investments in Flipkart, Ola, OYO, SoftBank’s representatives sit on the Boards of most successful start-ups in India. At present, India has 26 unicorns, making it the third-highest in the world after the US and China. The number is likely to grow manifold, with several new start-ups just taking wings.