Interestingly, technology companies in the auto sector, that saw prominent fundraising deals by Ola and Cardekho, secured second highest capital from investors in January-March 2019.
Startups in the consumer technology space have got a maximum share of investors’ wallet in the first quarter of the calendar year (CY) 2019. Out of 85 rounds of investments made, a total of $1.75 billion was poured in the consumer technology sector, showed data by startup data platform Tracxn. Across sectors, some of the major rounds in the first quarter saw Delhivery’s $413 million round led by Softbank, Ola’s $300 million from Hyundai and Kia, $150 million raised by Bigbasket from Mirae Asset and Alibaba, $100 million raised by OYO from Didi Chuxing, and CarDekho’s $110 million from Sequoia, Capital G etc.
Interestingly, technology companies in the auto sector, that saw prominent fundraising deals by Ola and Cardekho, secured second highest capital from investors in January-March 2019. During the period, $692.98 million was invested across 19 deals in the sector.
“In the auto technology space, a lot of work startups have also come up in various areas such as car servicing, spare parts, corporate employee transportation, and then there are startups working on connected car technology, driverless cars, electric cars etc,” said angel investor Sanjay Mehta.
Top funding rounds by technology startups (January-March 2019)
Mehta is among the earliest breed of angel investors in India who has invested in 72 companies, as per startup investment platform AngelList, including Softbank-backed OYO, LogiNext, PrettySecrets, Unbxd, Wow! Momo etc.
Corporates too have been partnering with startups. For instance, Maruti Suzuki had launched a programme for early-stage startups in the automobile and mobility space called Mobility & Automobile Innovation Lab (MAIL) in January this year. Tech Mahindra too had announced a programme in 2017 for startups globally called TechM Nxt.
Following auto, other sectors which have received maximum funding includes retail ($436.13 million in 37 rounds), food ($354.13 million across 13 deals), finance ($313.46 million in 29 rounds), enterprise application ($165.10 million in 42 deals), AI ($130.84 million in 22 deals), healthcare ($74.85 million in 12 rounds), media and entertainment ($44.79 million in just 7 rounds), and mobile ($38.45 million in 6 deals).
While on one hand sectors such as retail, food, finance, enterprise technology have continued to attract capital over the years, healthcare — despite seeing technology disruption almost around the same time when retail saw — hasn’t been able to catch investors’ fancy.
“Unlike consumer goods such as grocery, not everybody would need medicine periodically. Moreover, more than online patient-doctor connect platforms which also helps in finding a doctor, people would rather prefer if someone refers to them about a good doctor. Startups are trying to do in healthcare what retail startups did in retail, that is, aggregating, listing etc.,” said Mehta who also serves on the board of the accelerator of Maruti Suzuki to help them identify and mentor startups.