TIA Monthly Funding Report: Grab, India are bright spots in an otherwise brutal February

ABOUT

February has been a tough month for Asian funding.

But let’s start with the good news. India is doing well once again, propped up by large deals for babycare startup FirstCry, education tech firm Byju’s, and online lender Rupeek. Meanwhile, Grab announced a mega US$850 million deal.

These deals mask another downer of a month – dealmaking dropped 26% from the same month last year. Chinese investments are down by more than half over the same period.

WHY IT MATTERS

We may be seeing proof of Covid-19’s impact on the tech investment scene. In fact, 80% of startups told us in a survey that they’ve been affected by the rapid spread of the disease, validating anecdotes we’re hearing from startups about withdrawn term sheets and near-empty cash reserves.

The numbers for February continue the decline observed in January, back when the effects of Covid-19 weren’t apparent yet.

The prospects for March may not improve. So far, there’s been sharp drop in oil prices, which sent shockwaves through the global economy. Covid-19 shows no signs of dying down – it’s now spreading unabated in the US and Europe.

In short, we’re just getting right into the thick of it.

SOURCE

Data: Tech in Asia
Infographics: Susi Susanti
Analysis: Terence Lee. Editing: Eileen C. Ang