2021 was a landmark year for the venture capital industry in India, with a record number of deals, exits, and fundraising activities. This has catapulted the ecosystem onto the global stage and forced investors to pay attention to the country. Growth was propelled by a combination of factors, such as the nation’s demographics, government initiatives to make India a desirable investment destination, and accelerated digital adoption. 

The aggregate deal value for venture capital deals in 2021 was at an all-time high of $39bn, surpassing 2019 and 2020 combined. AUM of India-based venture capital funds also grew, standing at a record $25bn as of September 2021, up 33% from December 2020 and 48% from December 2019.

To find out more about the macro tailwinds that have driven the growth of venture capital in India, and the implications of this rapid growth in 2021 for investors looking at the country, read our Preqin Territory Guide: India.