India Startup Angel/VC Funding Digest- Q2 2013


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A 2013 Quarter 2 report on the Indian Startup Space in terms of Angel/VC funding. The report is developed by YourStory Research.

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India Startup Angel/VC Funding Digest- Q2 2013

  1. 1. YourStory Research                                                                                                               Page 1
  2. 2. Background for the report The year 2012 saw more than 200 deals worth more than $700 million done via Angel and VC investments. We then tracked Quarter 1 of 2013 which saw 55 deals (and 16 acquisitions) worth $160 million. The Quarter 2 of 2013 has seen 70 deals worth $240 million. Funding activity is by no means an indication of startup success but is a good proxy for tracking business viability. In this report, we provide a snapshot of the Angel and VC funding activity in the quarter 2 of 2013 with our insights. YourStory Research                                                                                                               Page 2
  3. 3. Overview 70 deals were announced in the Quarter 2 of 2013, out of which 41 were disclosed and 29 had amounts undisclosed. The 41 disclosed deals amounted to a total of $240 million. Along with other undisclosed rounds, our estimates are that Quarter 2 of 2013 saw close to $270 million of funding. The dark blue bars are the funding amount including all deals while the lighter bars exclude outliers. Outlier: $50 million- Snapdeal in June. Of all the deals, 30 were below $1 million which can be slotted in the angel/seed stage. The other deals fall under the following slots: YourStory Research                                                                                                               Page 3
  4. 4. 1 to 5 million: 25 5 to 10 million: 10 >10 million: 5 In terms of stages, one can put the ones under 1 million in the angel/seed stage, $1-5 million in the Series A stage, $6-10 million in series B and deals above that would be Series C,D,etc. But this bifurcation is not hard coded and hence we’ve given ranged for a better idea. YourStory Research                                                                                                               Page 4
  5. 5. Sectorwise Analysis The last quarter saw healthcare and eCommerce lead the pack and the trend carried on for the second quarter as well. And this time, eCommerce investments trumped others. eCommerce is leading not only in terms of amount (because of $50 million in Snapdeal) but also in terms of number of investments. eCommerce saw 10 deals across the three months amounting to $103 million while healthcare saw 9 deals amounting to $35 million. Next in line were Consumer Web, Mobile and Education in terms of number of deals- 8,7 and 6 respectively while the order is Mobile, Finance and Data Analytics in terms of the disclosed amounts. *Others include sectors like, F&B, Cloud, Hardware, Agriculture, Energy, Travel, Media, etc. *The graph doesn’t include Snapdel in the amount invested bar for eCommerce YourStory Research                                                                                                               Page 5
  6. 6. Healthcare: Out of the 9 deals, 2 were in the angel/seed stage while 5 were in the 1-5 million range and the other 2 were in the 6-10 million range. The Two Big Deals: Mumbai based MyDentist closed a $10 million round from Seedfund Advisors and Asian Healthcare Fund. MyDentist is a chain of dental clinics incorporated by Vikram Vora in 2009 and was incubated by Seedfund in 2010. It now plans to expand presence from 40 clinics to 120 clinics across Mumbai and Pune. Ahmedabad based Amrish Oncology which is a part of the Comprehensive Blood and Cancer Center (USA) raised $6 million from Singapore based investors. The funds are being used to drive the growth in India. eCommerce: Overall, the sector saw 10 deals amounting to $103 million including the $53 million SnapDeal biggie. Out of the 9 smaller deals, 5 were below $1 million. SnapDeal: In April, eBay invested $50 million in SnapDeal and under the commercial partnership, eBay will get access to Snapdeal’s 20 million registered users, logistics software and distribution network. The smaller deals include companies like: Bluegape, Bedbathmore, Cloe and OnlinePrasad. Other big winners: Foodpanda, an online food ordering portal (Rocket Internet startup) raised $20 million from AB Kinnevik and Phenomen Ventures. eCommerce portal Yebhi, BabyOye and HomeShop18 closed $12 million, $12 million and $ 15 million respectively. Data Analytics startup Qubole raised $ 7 million from various investors while Satin YourStory Research                                                                                                               Page 6
  7. 7. Creditcare Network (microfinance) raised $7.6 million. LBS app Hike raised $ 7 million while Power2SME raised $ 6 million. YourStory Research                                                                                                               Page 7
  8. 8. Analysis by Location The primary contenders - National Capital Region (NCR), Bangalore and Mumbai led the pack again with NCR clinching a 33% of the 70 deals. NCR includes, New Delhi, Gurgaon and Noida. Bangalore and Mumbai tied in on 2nd with 26% of deals each. Apart from these, Ahmedabad, Chennai and Hyderabad saw 10 deals together. YourStory Research                                                                                                               Page 8
  9. 9. In terms of amount of investment, NCR clearly led the pack (like Quarter 1 of 2013) with $111.1 million being poured in the startups by angels and VCs. SnapDeal consists almost 50% of this with its $50 million deal but even leaving that aside puts Delhi in the top position. The second in list is Bangalore with deals worth $33.8 million while Mumbai saw deals worth $27.35 million. More research on startups here: Subscribe to the YourStory Newsletter Contact for more information YourStory Research                                                                                                               Page 9