India is the second-largest global investment capital for digital shopping firms, thriving by a whopping 175% from $8 billion in 2020 to $22 billion in 2021, according to an official analysis published here on Wednesday.
On a global scale, India arrived in second to the US last year, which fascinated $51 billion in investment, observed by China at third with $14 billion and the UK at fourth with $7 billion.
Within India, Bengaluru ranks on top with a $14 billion wealth of Venture Capital (VC) investments in digital shopping in 2021, followed by Gurugram at No. 7 with $4 billion and Mumbai at No. 10 with $3 billion.
Bengaluru nearly tripled its investments from $5 billion in 2020 to take the top spot, ahead of other leading towns in the world – New York City (second), San Francisco (third), London (fourth) and Berlin (fifth).
According to the London & Partners estimation of Dealroom.co investment data, rising demand for online investments during a sequence of lockdowns across the world during the COVID-19 pandemic directed to global investors exhibiting a strong desire for backing e-commerce firms.
“Today’s data indicates that the UK and India are two of the world’s biggest hubs for digital shopping firms with high levels of global investment and unicorns,” announced Hemin Bharucha, Country Director, India at London & Partners – the Mayor of London’s international trade and investment agency.
“It’s great to see Bengaluru emerge a global leader for digital shopping enterprise last year. This surely builds several chances for collaboration with an existing big market in London.
“As Europe’s largest centre for digital shopping investment, there has never been a decent time for India’s strong pool of fast-growing e-commerce firms to select London as the destination to measure their business outside of their home market,” he announced.
The data also reveals that Bengaluru ranked number 5 among towns with the potential for future unicorns, just behind London.
Three of the 15 global towns with the greatest count of current unicorns are in India — Bengaluru at No. 6 with 19 unicorns in 2021 (up from three in 2020, Gurugram at No. 7 with 13 unicorns (up from 3 in 2020) and Mumbai at No. 14 with 7 unicorns.
Overall, global venture capital investment into digital shopping more than creased in 2021 following a significant customer shift to e-commerce platforms during the Covid. The total global VC investment for 2021 sat at a record USD 140 billion, up from USD 68 billion in 2020.