IDG Ventures, Helion pump $ 8-10 million in e-commerce start-ups

The unprecedented faith of venture capital continues for ecommerce start- ups in India. With Naaptol and letsbuy.com raised funds to have better foothold in burgeoning ecommerce ecosystem, according to a report published in newspaper, VC firms invested $8 million to $10 million in two such start-ups last week.

According to the report, , Bangalore-based IDG Ventures India invested $4 million in Valyoo Technologies Pvt. Ltd, which runs e-commerce businesses for eyewear (lenskart.com), watches (watchkart.com) and bags (bagskart.com).

In an another deal, Helion Venture Partners invested in Purple E-Retail India Pvt. Ltd, which runs baby and kids products site hoopos.com.

Both start-up refused to divulge how much has been invested in it, Helion’s managing director Ashish Gupta said it was in line with the VC firm’s average ticket investment. Helion’s so-called “sweet spot”, or the preferred investment band for early stage deals, is $3-5 million.

 “We are looking at raising another round of funding by February or March; it will be more than $20 million,” said Peyush Bansal , founder and chief executive of Valyoo. With the money the firm has raised, it will start new business units for jewellery, health and beauty products, besides spending on marketing and logistics.

Hoopos, which would eye at raising another round after 10 to 12 months, sets to utilize the money raised now for marketing initiatives, logistics and hiring. “We currently have 6,000 products in our catalogue. In a year, we would have 18,000 to 20,000 products,” said Vijay Jumani, chief executive, Purple E-Retail.

In this year so far, 46 e-commerce firms have raised $419 million, compared with 11 deals worth $58 million last year, according to VCCEdge, which tracks venture capital and private equity transactions.

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