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Internet start-ups in demand: Funding jumps 1.5 times over 2016

Online shopping, travel, taxi aggregators attracted good flows in the past three months

Sheetal Agarwal  |  Mumbai 

Start-ups pick up survival skills

2016 witnessed some normalisation and markdown in valuations of start-ups; it was also a weak year for funding in Indian But, the tide seems to have turned, with a marked improvement in these investments since March 2017. In fact, according to a study by Morgan Stanley, cumulative funding in April and May has exceeded that in the full of 2016.

“Cumulatively, total funds raised to date in 2017 at $4 bn-plus has far exceeded the total amount raised in 2016 ($2.6 bn). This does not include the amount raised by listed such as MakeMyTrip of $330 million within the online travel space,” said Parag Gupta, IT and analyst at in a report dated May 25. Online shopping, travel, taxi aggregators, payments and logistics attracted good flows in the past three months. After last year's ground check, valuations of start-up firms will be determined by a company’s ability to achieve profitability while continuing to grow. Investor interest in these firms will also depend on a their ability to deliver efficient returns on capital invested.

Internet start-ups in demand: Funding jumps 1.5 times over 2016

First Published: Fri, June 09 2017. 00:55 IST
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