The number of deals or rounds has also seen a descend by around 17 per cent from 224 rounds in October-December CY 2018 to 187 rounds in the last quarter. Delhivery, Ola, Bigbasket, OYO, CarDekho etc., raised among the largest rounds in the first three months of 2019.
The first quarter of the calendar year (CY) 2019 has seen a drop in startup investments vis-a-vis Q4 CY 2018. The January-March 2019 quarter saw total deal value dropping down to $2.4 billion from $3.2 billion in the preceding quarter — a fall of 25 per cent. The number of deals or rounds has also seen a descend by around 17 per cent from 224 rounds in October-December CY 2018 to 187 rounds in the last quarter, showed data sourced from startup data platform Tracxn.
However, compared to the same period (January-March 2018) wherein $1.8 billion was invested, the deal volume has increased. The number of deals is low from 298 in Q1 CY 2018.
“Late-stage deals show that a handful of companies are getting a larger share of the money while at early-stage there is not much left even though the number of deals is high. At mid-stage investors aren’t investing as they see investing for even a small stake at late stage a sure shot bet that they can sell it at a higher price ahead rather than taking a risk at the mid-stage,” Rohit Chokhani, Principal Founder, White Unicorn Ventures told Financial Express Online.
Among the major rounds that 2019 saw in its first three months include 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, CarDekho’s $110 million from Sequoia, Capital G etc.
The drop is also visible across stages of funding — early, mid and late stages between the last quarter and Q4 2018.
The early-stage (seed-series A) funding has reduced from near $547 million invested in 166 rounds in Q4 FY 2018 to $326 million in 134 rounds in Q1 2019. The arrest has also cascaded to mid-stage (series B and C) environment where $587 million was invested across 33 deals in Q1 this year versus near $738 million was poured in 44 deals Q4 last year.
Similarly, in late-stage (series D and beyond) funding that saw maximum capital infusion, the amount of capital has declined to $1.5 billion in the last quarter from near $2 billion in Q4 CY 2018. The only positive there was a slight increase in the number of deals from 14 to 19.
However, with respect to $295 million and $806 million invested in the early and late stages respectively in Q1 CY 2018, the funding in the last quarter across both stages has increased. But mid-stage continued to be under stress as funding has been on a downward slope in the last two quarters compared to $778 million invested in Q1 CY 2018.
Flipkart (now owned by Walmart) co-founder Binny Bansal, who had to leave the company following allegations of ‘personal misconduct’, has been among the top angel investors in India in recent years. As per deals tracker Crunchbase has so far invested in 29 companies including the recent funding in online insurance startup Acko last month.
Binny Bansal has made four investments in the first quarter this year, as per Tracxn data, to lead the top angel investors’ list in terms of the number of deals. Bansal backed breast cancer screening solution Niramai, robotic startup Nymble, and Crio.do — software developers learning platform.
Other notable names in the list include Freshworks’ Girish Mathrubootham, FreeCharge founder Kunal Shah, warehouse automation company GreyOrange’s co-founder Samay Kohli, Reliance Jio’s Chief Digital Officer Vishal Sampat etc., each of whom have made two investments.