India’s start-up investments on a free fall

India’s startup ecosystem is going through a lean phase. A lot of start-ups in sectors ranging from food-tech to logistics to e-commerce have seen pink slips, mergers and shut downs. The real bad news? There seems to be no ending to this freefall.
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The recent KPMG-CB Insights report confirms the worst. Investments in Indian startups slumped from $2.89 billion in the third quarter to $1.51 billion in the last quarter of 2015. The year 2016, saw a further fall in investments with around $1.15 billion invested in the first quarter, almost a 24% slump. The number of startup deals also fell 4% to 116 in the quarter.

According to the report, the largest deals in the January quarter were - $150 million secured by online grocery retail startup BigBasket, $150 million raised by e-commerce marketplace Shopclues, and $50 million raised by the country’s second most valuable e-commerce startup Snapdeal.

According to Venture Pulse, the quarterly global report on VC trends published jointly by KPMG International and CB Insights, Q2 2016 saw $27.4 billion invested across 1,886 deals globally. The total number of deals declined an additional 6 percent from Q1 2016, after reaching a high in Q2 2015.

After a marked decline in seed-stage deal activity to start 2016, Q2 saw seed share bounce back from 31% to 35% of all deals, driven by especially strong seed investment activity in Asia and Europe.

After median late-stage deal size in Asia ballooned to $150 million in Q4 2015 and crashed below $75 million in Q1 2016, the region saw late-stage deal size bounce back to $100 million in Q2 2016.

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