Indian Startup Funding Report 2014Q2: Deals Pick Up Pace; E-Commerce Continues to Suck Money In

Technology and tech enabled companies in India raised over Rs 4052 cr ($675 mn) from venture capitalists and other investors in the second quarter of 2014, according to the data we’ve compiled.
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So we are done with some more number crunching. We took a look at the venture capital investments in tech and tech enabled companies between April- June 2014. The data has been compiled from our sources and publicly available data and is the closest we could get to the real deal. 

We know of a few deals that have already happened but have not been announced. Those haven’t been included in the data set. And some companies haven’t disclosed the amount of investment, or the investors. Of the investments we tracked, 24 did not disclose the amount of funding they raised and hence was not added to the total funding amount.

When we say an education company, we mean a company which provides technology or technology enabled service to the education sector. That is, not a school or a tuition center. That couldn’t be helped. By enterprise, we mean companies that are selling software, hardware or services to other companies.

Without further ado, here’s the report.

Deal Value Jumps 35%

Technology and tech enabled companies in India raised over Rs 4052 cr ($675 mn) from venture capitalists and other investors in the second quarter of 2014, according to the data we’ve compiled. As compared to the previous quarter, there’s been a 35% growth in deal value.

E-Commerce in the Spotlight, again.

As compared to 58 reported deals in the previous quarter, there were 74 this time. That is, a 27% increase in deal volume. Just like the previous quarter, e-commerce investments dominated the deal landscape. Internet* & Enterprise companies raised a fair amount of money and health care and education startups got some attention as well.

Category

By value, as expected, e-commerce was the hottest category followed by enterprise and BFSI. Mobile, healthcare, and other sectors saw deals comparable to the previous quarter. By volume, most number of deals happened in enterprise sector.

Notable Deals

BookMyShow Secures Rs 150 cr Funding from Saif Partners & Others at Rs 1000 Cr Valuation

Freshdesk Secures $31mn in Series D Funding From Tiger, Accel And Google

Housing Raises Rs 115 cr Funding; Here’s Why They’re Killing It

Online Insurance Seller Policybazaar Raises Rs 119 Crore in Funding

After Acquiring Myntra, Flipkart Raises $210 Million Funding Round Led by DST Global

After Flipkart Myntra Merger, Snapdeal Announces $ 100 mn From 5 New Investors

Remote Tech Support Firm iYogi Secures $28 Mn Series E Funding from Axon Partners

Yatra Raises Rs 140 cr Funding; Acquisitions to Follow

Bangalore, NCR Notch Up Most Deals

Citywise

Among cities, Bangalore and NCR saw most number of deals take place. By volume, nearly a third of all deals happened in Bangalore (29%) whereas NCR was close behind (28%). By value, Bangalore topped and NCR was a close second. Flipkart’s big fundraise helped Bangalore to the top and Snapdeal’s fundraise added to total deal value in NCR.

*  Internet includes online classifieds and online travel companies.

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