According to Investment Banking Firm, Jefferies, Unlisted Internet Startups, India have raised $2 Billion through private funding during the first quarter of 2017 as compared to $2.7 Billion raised in 2016. The banking firm also stated that there has been a ‘perceptible rise’ in the fintech companies even after the demonetization period.
In an article by TOI, Jefferies Investment firms quoted that, “We estimate that a total of $2 billion of private funding flowed into Unlisted Internet Starups in Q1 2017 (the first quarter of 2017), marking a reversal of the weak inflows in 2016.”
“After a relatively muted 2016 in which private internet companies in India raised $2.7 billion, there has been a sharp surge in funding activity in Q1,2017 with $2 billion raised in the quarter, the second highest after the 3Q2015″ the bank stated.
The firm has also claimed that Ola and Flipkart have raised the money while lowering the valuations when compared to their previous rounds, this has helped them in raising funds. “Down rounds have likely helped the market clear – media reports suggest both $1 billion raised by Flipkart and $330 million by Ola (accounted for 65 percent of the total funds raised during the quarter) have happened at lower valuations vs previous round,” quoted the statement from the firm.
Other large fund raising during the quarter included $200 million by Paytm Mall (e-tailing), $100 million by Delhivery (e-tailing logistics), $57 million by Freecharge (Fin-tech), $55 million by CarTrade (Classifieds) and $55 million by Practo (Healthcare services).
The reporter also said that “With Alibaba and SAIF Partners infusing $200 million into Paytm Mall, reportedly at a valuation of over $1 billion, there are now at least five large players in horizontal e-tailing in India viz. Flipkart, Amazon, Snapdeal, ShopClues and Paytm Mall. “There have also been media reports of Alibaba independently entering the Indian market. We believe this makes consolidation inevitable in the segment.” Read more about Indian Startup Ecosystem.