E-commerce and consumer Internet companies have raised over $7 billion (~ ₹ 4,89,00,00,00,00 ) in private equity and venture capital funds in 2018, says a report by EY.
Of the total investment, startups such as Oyo, Swiggy, Byjus, Paytm Mall, Pine Labs, Zomato, Udaan, Policybazaar and Curefit collectively raised the lions share of USD 4.6 billion in 2018, says the report.
The report covers sectors such as travel and hospitality, edutech, payments and wallets, fintech and healthtech, among others, as part of the e-commerce and consumer internet segment.
A few large deals included Walmart’s acquisition of Flipkart for $16 billion, Alibaba’s investment in Bigbasket and Paytm, Tencent’s investment in Dream11, and Nasper’s investment in Byjus and Swiggy.
“This massive opportunity has been unlocked by the increasing number of digital transactions, digital literacy and the rise of rural e-commerce, growing use of vernacular content, adoption of the omni-channel strategy, low mobile data tariffs coupled with data-driven personalization,” says the report.
The stimulus provided by Digital India, Start-Up India and Make in India also helped, it added and expects the trends in terms of consolidation will continue in 2019 as well.
“Companies will need to consolidate to add more services and segments to expand the level of engagement with customers and leverage emerging technologies like artificial intelligence, blockchain and internet of things, among others, to service the market better,” it said.
A report last year revealed that blockchain startups in India have raised mere $5.3 million between January 2016 and April 2018, including & counting all funding options, sources, investment instruments etc.
Earlier this year, an another report by Venture Intelligence said that PE investments had already surpassed the previous high – $24.3 Billion across 734 deals in 2017 – in the first nine months of 2018, big ticket investments in Swiggy and Byju’s towards the end of the year catapulted the year’s investment tally by 36% year-on-year.