Tamil Nadu sees 60 private equity and venture capital transactions in 2021


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Private equity and venture capital firms invested around $ 1.8 billion in Tamil Nadu-based companies in 60 deals in 2021. Data collected by Venture Intelligence, a research firm focused on Finances, transactions and valuations of private companies, show that in the first quarter of 2021, companies invested $ 510 million in 11 deals and in the second quarter, about $ 323 million was made in 11 deals.

During the September and December quarters, approximately $ 415 million (19 transactions) and $ 585 million (19 transactions) entered state-based businesses. In 2020, PE-VC companies invested $ 690 million in 41 transactions in state-owned companies.

Arun Natarajan, Founder of Venture Intelligence, said: “PE-VC’s investments in Tamil Nadu-based companies grew 166% year-on-year in 2021 to over $ 1.8 billion (out of 60 deals) . Chennai fintech startups like M2P Fintech, CredAvenue and GuardianLink have made a strong impression on the radar of Indian and international venture capitalists in 2021, ”said Natarajan.

“It was also interesting to see state-owned B2C brands like Juicy Chemistry, TenderCuts and The Indus Valley attracting out-of-state venture capitalists,” he added.

The year 2021 saw established companies like TVS Logistics and IPO-related financial services firms like Five Star Business Finance and Star Health Insurance attract mega investments (over $ 100 million each). The traditional investor favored enterprise technology sectors and in particular SaaS, exemplified by Uniphore Software and ChargeBee, continued to attract large investments in 2021.

“The IPO of Unicorn SaaS Freshworks on Nasdaq and the exit of cross-border software start-up Ally (via acquisition by Microsoft) will only put more wind in the sails of corporate tech start-ups state, ”Natarajan said. noted.

Investments by Angel Networks and “Super Angels” in Tamil Nadu-based companies also increased 46% year-on-year to 38 transactions in 2021. The number of such investments saw a steady increase every quarter in 2021, Mr. Natarajan said.

Last year, the state saw 26 angel investment transactions. Some of the companies that received angel investments were Blaer Motors (raised Rs.2.61 crore from The Chennai Angels), Planys Technologies (raised $ 1.6 million as part of its ongoing pre-Series A round) and Agnikul (raised $ 11 million in a Series A round led by Mayfield India).

In February, the president of the Mahindra group, Anand Mahindra, had invested in Agnikul.

In 2021, two Tamil Nadu companies, Chargebee Technologies and Five Star Business Finance, became Unicorns.

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