New set of investors are ready to make their debut with the existing and even new startups in the Indian ecommerce space, in order to explore the developing internet space in the country.
Canadian Pension plan fund (CPP), telecom giant Singtel and Saudi Arabia’s sovereign wealth funds are in talks with larger startups and companies like Flipkart and Myntra, to explore investment opportunities in the local market, as stated by ET.
The probability is there to sign an investment between $50-150 million for the leading players in the consumer internet market, having turnover in millions and eyeing public listing in next two years. However, as per the reports, there is no certainty for any deal and discussions are still at an early stage only.
Toronto based Canadian pension Plan fund is $183.3 billion fund and is a part of CPP Investment board. The CPP Investment Board has invested in more than 3,100 public companies around the world, including 500 Canadian companies. The recent investments include $300 million in skype in 2009 wherein the stake was sold in 2011 for $933 million to Microsoft.
The venture capital arm of Singtel, Innov8 is a $150 million fund, focusing on investments in technologies and solutions that lead to quantum changes in network capabilities, next generation devices, digital content services and enablers to enhance customer experience.
The recent investments include $10 million in TubeMogul, $5 million in Yodo1, and seed funding of $628k in Shopspot. At Innov8, depending on the stage of development, initial investment amounts will range from S$100,000 to S$30 million and in exceptional cases, investments above S$30 million can be made.
As analysed, in the last three years, 52 e-commerce start-ups raised $700 million in venture capital funding, but only 18 companies were able to attract bigger funds. Now with the latest trust developed in ecommerce opportunities in India, by the entry of Amazon and ebay’s investment in Snapdeal, it might attract more investors eying the growth in India.
Other biggies that have already entered the ecommerce market in India includes OCP Asia, that pumped $15mn in Homeshop18 and is looking to go for an IPO, A russian investment firm ru-Net coming in to put money in Smile Group ventures and also joining a deal in Snapdeal and Fidelity Growth Partners backing Yebhi.com. Though Tiger global still remains the biggest investor in ecommerce space in India