This year, 2015, will happen to be another year of record funding, surpassing all the funds flowing into the market through venture capital funds, in 2014. It totals to about 15,600 crore for the start ups in India, this year. This is due to the interest generated in domestic startups globally. The funds flowing in into the startups in the first half of the year surpass all the funds that had flown into in 2014 says sources. Investors, of course are jostling to place their bets on the UnicornBSE 0.00 % which is supposed to be the next potential against the internet penetration and the increase in the adoption of smart phones. The former will foray into a billion dollar valuation firm, according to news reported.
In 2014, the funds drawn in Indian startups were $2.34 billion or Rs 14,850 crore while this year till June 26, the startups saw the funneling of funds to $2.46 billion or Rs 15,600 crore. Against deals of 297 in 2014, they have closed 197 deals this year till date. The deals show a higher level of dealing according to VCCEdge, the research firm.
People are interested to invest in the Indian mobile internet which brings in a lot of unprecedented capital, said one of the Directors of a venture capital firm. So much capital has never been available in most parts of the world. According to an online report, around half a dozen set ups are getting funded by venture capital funds for foraying into the startups market as leaders. These expanding deals are therefore driven by a sense of great competition in the market in express deliveries, food technology, local services and in segments of high demand.
The money raised in the business is so much that there is no competition raised in business but to raise that much of money, there should be a higher pace to raise the rounds at a one hundred per cent pace, said one of the venture capitalists, wanting to remain anonymous on the issue. This aggressive raising on the capital is a function of the chase of the scale. Swiggy, a firm for application of food delivery shows a 25 times growth with orders reaching upto 2000 a day. It should extend to 12 cities per day, as per news sources.
The Swiggy CEO while talking about crossing the double digit scale has to say that the company concept is mainly city centric and it expands to more than five to ten neighborhoods in the city. This happens as fundraising is necessary in order, not to slow down the scale. Swiggy, the company based in Bangalore raises two successive rounds of funding in around less than seven months. The total funding till the last month was Rs 105 crores, while Rs 12 crores this month.
Venture capital funds have been raised in more than sixty technology startups, according to a present research. These are the segments that have become the most essential part of the checklist of the investor. The mobile companies and the internet have also surged up to two to four times in the past couple of years. Software firms giving out service solutions have increased valuation ranging from 30 to 50 per cent. Valuation for Blue Apron, the ready to cook meals firm, the grocery delivery as in Insta Cart and Uber, the online cabs services has risen. Thus, there has been a havoc change happening in the Indian startups due to venture capital funding since last year, according to sources.