India added close to 10 unicorns in Q3, versus seven by China and Hong Kong, and four each by the UK and Canada, signalling the rapid pace of investment activity.
However, the US continued to lead the chart by a distance, adding close to 68 unicorns in the September quarter.
The quarter also saw Indian startups raise $10.9 billion across 347 deals; the first time investments in Indian startups have crossed more than $10 billion in a quarter, PwC said.
As per industry estimates, Indian startups have raised more than $24 billion in the first three quarters of 2021.
“Startups have leveraged the accelerated digital adoption seen among businesses and individuals alike to create newer business models, and this is driving investor interest in a big way. We are seeing the average deal size increase and quicker funding rounds, which has led to a surge in deal activity across sectors, since early this year," said Amit Nawka, partner - deals and startups leader, PwC India.
More than 84% of the overall funding activity during the third quarter was focused on growth or late-stage deals, while 61% consisted of early-stage funding rounds, the consulting firm added.