2016 proved to be quite a forgettable year for the Indian startup industry with fundings running dry forcing many startups to shut their shops unexpectedly. But, according to a recent report by data intelligence platform CB Insights, things are finally looking good for the industry.

According to CB Insights' ‘Asia Tech Investment Report,' venture capital funding in Asia is finally showing an upward trend after a sorry performance in 2016. In addition to this, the report also revealed that technology funding in the Indian subcontinent has also shown a significant growth from last year.

The report has highlighted that since the year 2012, a whopping $106 billion have been invested across 5,019 deals. Further, as far as 2017 is concerned, the year has seen a figure of $19.3 billion of venture capital being pumped into Asian-headquartered tech companies across 458 deals year-to-date. This means, if the deals are able to maintain the current run-rate, they are on track to increase by 14 per cent over the last year number, while funding is expected to on grow by an impressive 132 per cent.

Here are some important takeaways for India from the CB Insights Report:

Tech funding Increases in Value In India

According to the report put together by CB Insights, while India-headquartered tech companies clocked nine fewer financings compared to what they did in Q4'16, but the total capital invested in the quarter jumped by a whopping 550%.

Some of the major financings that took place in the quarter included India's e-commerce giant Flipkart’s $1.4 billion Series J, homegrown ride-hailing giant Olacabs's $330 million Series H, and Paytm E-Commerce's $200 million Series A.

Early stage Deals Show A Downward Trend In India

The report highlighted that share of early-stage deals that primarily includes seed funding and Series A funding saw a downward trend throughout Q1 ’17. The overall figure decreased from 73 per cent of deal share to 59 per cent. However, other deals, including corporate minority, convertible and other forms of venture capital saw a 6 per cent increase from 10 per cent to 16 per cent.

Internet Deal-share Declines In India

Internet companies based out of the Indian subcontinent garnered 64 per cent of deal share in Q1'17, a figure which is 4 per cent lower than the figure in Q4'16. However, mobile and telecom deal-share rose from 20 per cent in Q3 ’16 to 31 per cent in the first quarter of this year.

India e-commerce funding Bounces Right Back On Track

By raising a jaw-dropping $1.4 billion in March from big names like Microsoft, eBay, and Tencent, Flipkart helped funding to India’s physical goods e-commerce startups increase from $948 million in 2016 to $1.75 billion in Q1'17.

Paytm Makes The Case For Fintech Funding In India

There is no denying the fact that VC-backed fintech investment in India initially saw a lacklustre performance in the first quarter this year, but Japan-based SoftBank's whopping $1.4 billion investment into Paytm parent company One97 Communications put the year 2017 right back on the track for a glorious year in Indian fintech funding.

Tencent and Alibaba Are Now Looking At India For Opportunities

According to the CB Insights report, Chinese companies like Tencent and Alibaba are now considering India as a favourable spot outside of its home country China. This is because Alibaba, its affiliate Ant Financial, and Tencent have already backed four of India’s private tech companies this year valued at more than $1 billion.

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