News Corp VCCEdge, India’s leading publisher of alternative investment, deals and startup news, data and information and part of globally diversified media, education and information services group, News Corp, has released its Startup Deal Report Q1 CY2017.
Capturing funding deal activities encompassing private equity, venture capital, angel/seed investment transactions for the seventeen quarters ending March 2017, the report also offers information on mergers and acquisitions with sector and region-wise analysis.
Highlights of Startup Deals report
Startup funding sees grim times
- Startup funding activity slowed down drastically with deal-making slipping 47.45% vis-a-vis Q1 CY2016
- Cumulative deal values dipped by 45.76% Q-o-Q
Consolidation soon after a record year of startup funding in the year 2015
- M&A deals in the startup space witnessed a 75% jump Q-o-Q
- Acquisition of Citrus Payments Solutions [$130mn], One Mobikwik [$41mn], ZipDial Mobile Solutions [$31mn] and Local Cube Commerce [$16mn] are amongst the top M&A deals
Investors show preference for late stage funding
- Angel and seed investments fell both in volume and value terms with deal volumes reduced to half with 120 deals in Q1 CY2017 in comparison to 245 deals in the same period last year
- Series A funding declined 65% in deal value on a Y-o-Y basis
- Series B funding value improved 22% in the FY Q1 compared to the same period last year, despite deal numbers being lower by 16%.
Fin-tech in; Food-tech, Travel-tech on the way out
- Fintech with 11 deals worth $18.5 mn, Food Tech with 8 deals worth $11.1 mn, Travel Tech with $11.3 mn from 4 deals, Health Tech with $8.43 mn from 10 deals and Real Estate Tech with 2 deals worth $10 mn were the top sectors that attracted investor interest
- Health Tech remains a strong bet in terms of deals bagged
Bengaluru Outshines Delhi in Growth of Startup Funding Deals
- 24% of start-up deals were cracked in Bangalore at a total deal value of $96 mn with 67.5% being at the seed stage
- Second is Delhi-NCR in terms of deal volume with 38 deals worth $44 mn
- 60% of deals in Mumbai were in the angel stage with cumulative deal values touching $34 mn
- Hyderabad with 15 deals to the tune of $4mn and Chennai with 5 deals amounting to $12 mn made it to the top 5 investment destinations of India.
- Investment pattern : Angel and seed investments seem to be the dominant theme across cities without exception.
Key 5 Startup deals in Q1 CY2017
- Bengaluru-based ID Fresh Food India Pvt. Ltd [Packaged Foods & Meats category] raised $25mn
- Bengaluru-based Cue Learn Pvt. Ltd [Education Services category] raised $15mn
- Gurgaon-based Square Yards Consulting Pvt. Ltd [Internet Software & Services category], Noida-based Holiday Triangle Travel Pvt. Ltd [Real Estate-Tech category] and Mumbai-based Ulink Agritech Pvt. Ltd. [Fertilizers & Agricultural Chemicals category] raised $10mn.
Sharing his views on the News Corp VCCEdge Startup Deal analysis Q1 CY2017, Gaurav Roy, Business Head, VCCEdge, News Corp VCCircle said
A rise in Series-B funding even as seed and Series-A funding trends show a decline reflects investor cautiousness in early and mid-stage funding and the increasing focus on market-readiness for funding.
The relief however is that M&A deals have picked up momentum post-2015 coinciding with the drop in funding activity in the startup space, turning into an exit route for some promoters and a major source of funding for others. Enterprises which can work on a combination of strong revenue models and continuously updated technological know-how which ensures a great consumer experience will continue to attract investors.
About VCCEdge
VCCEdge is an online financial research platform of the VCCircle Network which is owned by the global diversified media, news, education and information services company – News Corp. VCCEdge offers information on mergers and acquisitions, private equity and venture capital transactions including deal terms, structures, deal amounts and valuations. It also contains entity information on all companies involved in the transactions including target companies, investors and advisors. For more information, visit VCCEdge