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India accounts $427 million in funding from 64 deals in Q1 2014

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india funding q1 2014

India accounts $427 million in funding from 64 deals in Q1 2014

According to the figures that have come in for Quarter 1 2014, India has accounted $427 million in funding ranging across 64 deals in the tech space. CB Insights, which is a Venture Capital analysis firm, provided these figures in its latest research report.

Large funding deals in e-commerce sites like Snapdeal and Flipkart have helped Indian Tech funding in crossing $1.3 billion across 266 deals. This figure is up by 21 % on a deal basis versus the previous four quarters (Quarter 2 2012-Quarter 1 2013) and 69% more on a year on year funding basis.

According to the Venture Capital analysis firm, the rise in numbers is being largely headed by huge investments in the e-commerce firms. This includes three separate funding rounds for popular e-commerce site Snapdeal for over $255 million and a $360 million cumulative Series E for Flipkart.

The rise in the number of deals projects to the clear influx of initial stage venture capital in the country. This has also accounted for about 82 % of all the tech deals in the past 4 quarters. This figure can be seen as a positive sign for start-ups in India.

Bangalore has superseded major cities like Mumbai and Delhi-NCR in getting dollars and deals. The city is responsible for 39 percent of all India Tech funding. Online fashion and lifestyle e-commerce site Myntra’s $50 million Series E and Flipkart’s $360 million Series E accounted for 31% of all funding in the country.

With over $300 million across 30 deals, New Delhi acquired the second position and accounted for 23% of tech funding.

500Startups left all the investors in the India technology companies behind by having 20 investments over the last 4 quarters. Blume Ventures, which is a Mumbai based see venture, came in second while Accel Partners acquired the third position.

The research report presented by CB Insights also stated that the majority of the country’s largest fundraises in 2013 have been for e-commerce companies. The e-commerce industry is responsible for about 72% of all funding to the tech firms in the last four quarters, with the Internet Software and Services and Mobile Software and services firms filling up the Top 3.

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