$1.6 billion funding, 199 deals: Chennai’s rise as a startup hub

Good morning,

The SaaS capital of India, Chennai is fast becoming one of India’s key startup hubs. 

Between January and June 2021, Chennai attained the 6th spot among the eight Tier-I cities in terms of the number of deals (17), as well as the amount of funding ($73.8 million) raised, data by YourStory Research reveals.

From January 2015 to June 2021, Chennai startups have raised a total of $1.6 billion across 199 deals. While the maximum concentration of deals is at the early stage, the amount of funding is highest at the growth stage.

The city is already home to three SaaS unicorns — Chargebee, Zoho, and Freshworks. The top sectors the startups operate in include fintech, enterprise tech and deeptech, with automotive, new-age tech, logistics tech, retail/consumer brand, and social being emerging sectors.

Amid the pandemic, investors have also been testing waters in different niche sectors, giving rise to a number of early-stage deals.

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News & Updates

• The country is in an exciting phase of growth and the economy is expected to add $2.5 trillion in the next five to 10 years, Paytm Founder and CEO Vijay Shekhar Sharma, said while speaking at a two-day virtual youth conclave organised by IMC Chambers of Commerce and Industry.
• Anurag Ramdasan, Principal - Investments at 3one4 Capital said that the early-stage venture capital firm expects to fully tie up commitments for its latest fund of over $100 million corpus during the current quarter.
• Simpliwork Offices plans to raise $50-60 million as equity to expand business in India and enter into overseas markets, like Singapore, as it sees the demand for managed flexible office space rising amid the COVID-19 pandemic.

Before you go, stay inspired with… 

“This [a large number of Special Economic Zones (SEZ) in Chennai], coupled with fast-paced infrastructure development and a strong IT talent base, is attracting more startups to the region.”

— Rohini Prakash, Founder, Tomorrow Capital

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