A recent CB Insights report has put forth some startling facts about the Indian startup industry. The report revealed that a high number of technology startups in the ecosystem made a decision to exit this year. In fact, the number of initial public offerings (IPOs) filed by startups in 2017 till date has reached the most the country has witnessed in 5 years since 2012.

Till a couple of years ago, there was a looming concern in the Indian subcontinent that the tech ecosystem wasn't witnessing too many exits of startups through mergers & acquisitions or IPOs. But, CB Insights' current report is testimonial of the fact that the situation is changing for better.

According to the report by the US based research firm, the number of first exits witnessed in Indian tech companies has tripled from 52 in the year 2012 to 184 last year in 2016. The report also noted that even though between 2015 and 2016, the exit activity seen in the ecosystem remained the same, the IPOs saw a whopping 400 per cent increase– from 1 to 4.



India is home to the third largest number of technology driven startups in the world, after the US and the UK, according to a study done by Assocham in association with Thought Arbitrage Research Institute last year.

The third largest tech ecosystem in the world has registered a decent increase in deal activity and active investors in the recent times. Despite this, more and more tech startups in the country are choosing to not ride the cash boat provided by private equity firms, VC's and any other investment institution.

When a startup goes the Exit way, it provides capital to the startup investors. This capital received can then be utilised to return the money owed to the startup's limited partners or to the investors themselves.

For the uninitiated, startups can make an exit by either taking the mergers and acquisitions route or going for IPOs. According to CB insights report for the year 2016, 180 Indian startups exited through M&A, while four chose the IPO route.

The latest CB Insights report highlights that a total of 101 startups exited in 2017 Year-To-Date (August 1, 2017), with 10 IPOs, six of which took place in the month of June and July itself.

The report also revealed that when it comes to 6 industries that witnessed the most exits since 2012, the advertising, sales, & marketing industry occupied the numero uno position, by registering 37 exits during that time period. With 23 exits, the IT solutions & software development industry occupied the second position.

The CB Insights report also showed that exits among marketplace startups have grown from a dismissal 1 in 2012 to 18 last year. For 2017, the industry (marketplace) is currently leading the way with 9 exits.

According to the report, the Food and grocery industry has also seen an increase in exits- from 1 in 2012 to 10 in 2016. It also noted that ten of the most well-funded tech companies in the country ended up raising huge capital in ‘pre-exit’ funding. Videocon d2h earned a special mention in the report as it raised the most money before it merged with Dish TV Videocon in 2016, at $300 million.

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