Indian internet companies have received investments worth $7.4 billion in the last nine months till September. This indicates a revival of interest among global investors as the country furthers its digital push to get more people to transact online.
According to data from researcher Tracxn, firms got $7.4 billion in the nine months till September as against $4.5 billion in 2016, when investors
had shied away from putting their money on companies
unless a profitable route was visible, Economic Times
reported on Friday.
In the previous year, venture capital firms invested $7.6 billion on consumer startups
that chased growth by throwing money to buy customers.
In 2017, Japanese investor Softbank
added to the funding by refocusing its interest in India – through Paytm Mall
– after its Snapdeal
had written off close to $1 billion in Snapdeal
before it tried to engineer a merger with Flipkart, but the founders of the Delhi-based online marketplace wanted to remain independent.
In May, Softbank
pumped in $1.4 billion through the Paytm Mall, which has taken the third place in the e-commerce
market and around $ 2.5 billion in Flipkart, part of it to buy Tiger Global’s stake in the country’s largest e-commerce
Besides this, Softbank
backed its portfolio company OYO rooms
with $250 million, continuing its streak of betting large amounts in Indian internet
firms that is looking to disrupt traditional business models.
Data from Tracxn suggests that around $6.9 billion is in growth state deals, reiterating the fact that investors
are backing winners than throwing money at every single internet
company with a promising idea.
Since the launch of Reliance Jio
last year, India has seen a massive jump in data usage, bringing in more small town users to access the internet.
This has also resulted in increased online access to users who are consuming content and shopping online.