Fewer deals but larger investments in India in first-half of 2017
The Indian startup ecosystem has evolved to adapt mature ways of investing in 2017, according to Tracxn reports. There was lesser number of deals in 2017 compared to 2015 and 2016, but larger amounts were invested with investors looking to derive value from their investments. In contrast, the earlier years (2015-16) in India marked a period of ‘spray and pray’ venture capital investing- an early-stage investment strategy wherein there is distribution of investments to many startups hoping for some to turn into major players yielding substantial results.
Number of deals & Investment figures
Tracxn statistics shows that a total of 563 and 689 deals were made during the first six months of 2015 and 2016. However, the number of deals made during the first half of 2017 has lowered to 509, representing a drop compared to the previous years. The first half of 2015 and 2016 saw $ 4709 million and $ 3947 million being invested across Indian startups, respectively. In comparison, the first six months of 2017 has seen $ 6445 million being invested, which is a significant increase from previous years.
India’s top funded startups for 2017
Investments this year has been witness to mammoth funding such as the $ 1.4 billion being invested in Paytm by Softbank, another $ 1.4 billion in Flipkart backed by Tencent, Microsoft, eBay and Naspers and $ 404 million in Ola by Falcon Capital and Softbank Group. Flock, a free communication app for businesses, was able to raise $ 25 million worth of angel funding. WeAreHolidays and iSOS took second and third position with $ 7.7 million and $ 5 million, respectively. When it comes to seed funding, Acko, an independent general insurance company, was able to raise $ 30 million from Accel Partners, SAIF Partners and Catamaran Ventures. This was followed by Julia Computing raising $ 4.6 million and WayCool Foods and Products raising $ 2.7 million in seed funding. [irp]