Indian Here market has made a strong comeback in the last year or so after experiencing a slowdown for a few years. New leaders in the VC market are seen emerging in different sectors of economy. There was a quantum jump of 550% in terms of amount of investment in tech and other companies in the last quarter of 2016 even though the number of investments made by VC firms was 9 less than the previous quarter. This information has been revealed by a recent report published in CB Insights.
According to Sandeep Singhal, one of the founders of VC firm Nexus Venture Partners, there has been a consolidation of investments in the India market. His venture capital firm has companies like Snapdeal and Druva in its portfolio.
The report from CB Insights says that major investments by VC firms in the last quarter of 201 have been in the following companies.
- Series J investment of $1.4 billion in Flipcart
- Series H investment of $330 million in Ola Cabs
- Series A investment of $200 million in Paytm
Singhal says that investment nowadays is more in companies that build up business in a more capital efficient manner. These are the companies that differentiate themselves on a competitive basis rather than focussing on discount models. He says that many of the uncertainties that plagued the VC market in India have gone away and the market is exuding positive sentiment at present. However, he cautions against expecting inflow of massive amounts of investments in Indian market by venture capital firms.
The bar has been raised and no longer are there chances of crazy valuations as was the case a few years ago. Investors today are upbeat about start-ups that survived the difficult times and have found a solid footing in the Indian market.