India leads activity and China leads volume for Asian ecommerce investments – A report

With the rising Asian population mainly contributed by China and India and the overall consumer spends, the retail via ecommerce is coming out as a natural trend. This is further leading to investments in ecommerce companies in Asia going up as highlighted in a recent report by CB Insights.

Since 2010, $6.9B across 383 investments has been noted in Asian eCommerce companies where India and China are witnessing the larger activity. The funding activity and deal volume are growing 56% and 31% year-on-year respectively with fairly small valuations (<$50mn) and numbers for exits.

The other highlights includes:-

1) India leads in financing deal activity with over 150 deals since 2010 and 25 deals in 2013 alone.

2) China is leading the deal volume, the reason for which can be larger market size and bigger opportunity to grow, making VC’s put in more money.

asian ecommerce funding - china beats india3) The major investment in Asia is done across Apparel & Accessories, consistently taking 1 0f 4 deals. Such as Rocket Internet-backed Zalora and China-based  Moonbasa.

4) Most active investor for Asian region is Tiger Global with majority of deals done in India. The other top investors include Accel Partners, Intel Capital, Sequoia Capital and IDG.

5) Indian eCommerce companies have been responsible for more than 4 of 10 exits over time and almost 50% of exits in 2012 and 2013 to-date.

The report, for the time being has made it clear that Asian ecommerce sector overall will remain exit challenged. Though, VC’s are looking to plow higher amount of money from the Asian market in times to come being optimistic for a turn to happen.

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To get the full report click here

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