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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

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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

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

image
Business Standard
177 22

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

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

image
Business Standard
177 22