The first Quarter of Year 2013, saw the emergence of many new startups along with market expansion of few old players. The positivity in the market increased with the filing of confidential IPO by HomeShop18, gradually gaining more attraction of the investors. Government approval to IVYCap Ventures to invest USD 36 Million in Indian startups leads the way to bring a major breakthrough in the sector.
A Brief Overview of the Q1 funding in internet market space, in Year 2013 is as followed:
Total Number of deals
Approximately 46 deals in Internet categories such as E-retail, E-education, Digital service, Online media and information portals,etc. took place in this quarter via various funding measures like M&A, series of fundings by venture capitalists and angel investors in startups.
** Other routes of funding include, term loans and debt Financing
Major Merger & Acquisitions
Around 7 major acquisitions were seen in Q1, Year 2013 across various categories. However, in most deals,the amount involved was kept undisclosed.
Though Majority of the investors did not disclosed the amount of funding, but still the total disclosed funding of around USD 493.5 Million was done across all categories in internet ecosystem in Q1,Year – 2013.
Considering the disclosed funding, the major investment was done in online information portals which include search engines and websites providing online information about housing, finance, holiday packages, eating joints etc. amounting approx. USD 162 Million.
However, In terms of number of deals, E-retail still remains the most lucrative sector for investment, continuing the market trend of FY12.
Among the Angel,VC and Corporate investor groups, Corporate investors lead the investing round with around USD 344 Million as most of the Angel and VC funding remain undisclosed in Q1. Info Edge emerges as the leading corporate investor with an investment around USD 171 Million.
On looking upon the series of funding done, it occurs that the majority of deals were done in series B, thus market opening up for follow up funding.
With the announcement of google and IDG ventures to invest USD 100 Million and USD 75 Million in indian startups, the Q1 Year 2013 ends with creating new hopes and opportunities in the market. Some new ventures such as bookturbal.com, a justdial venture for online food delivery service are proposed to enter the market soon amongst others as many other startup batches are in incubation under various Accelerators , thus encouraging the Indian startup ecosystem.