This article is an extract of Inc42’s recently released Indian Tech Startup Funding Report H1 2018, which provides a detailed analysis of the funding trends, VC funds analysis, and mergers and acquisitions (M&As) in the Indian startup ecosystem for the period January-June 22, 2018. To read more articles of this report, click here.
According to the Inc42 Datalabs’ Indian Tech Startup Funding Report H1 2018, till June 22, $3 Bn was invested across 372 deals — a 47% decline in the total funding amount and a 17% drop in the number of deals as compared to H2 2017.
The sector-wise breakdown of deals revealed that enterprisetech, fintech, and ecommerce witnessed the maximum number of deals in H1 2018. Inc42 Datalabs revealed that 46% of the total funding of $3 Bn in H1 2018 went to fintech and ecommerce alone.
The fintech sector marked a sweeping victory, occupying the first spot in terms of tech startup funding in H1 2018. Fintech startups raised a combined funding of $631.29 Mn across 70 deals in H1 2018.
The second spot was taken up by enterprisetech, which raised $345.06 Mn from 70 deals, while the third spot was notched by ecommerce with $786.87 Mn funding across 49 deals.
Sunrise Sector Fintech
In H1 2018, fintech startups raised $631.29 Mn, a fall of 68% compared to H1 2017. However, in terms of deals, H1 2018 witnessed an increase of 6% reaching 70 deals from 66 deals of H1 2017.
With more than 500 fintech startups in India, the country is aiming for financial inclusion with even the government currently reviewing the effect of the fintech industry in the country.
On one hand, the government’s aggressive push for cashless technologies such as digital wallets, Internet banking, mobile-driven points of sale, etc, and on the other, the launch of the IndiaStack — eKYC, UPI and BHIM — are forces challenging traditional institutions and the cash-dependent Indian society.
Deal Sizes Higher In Enterprisetech
Enterprisetech startups raised $345.06 Mn from 62 deals in H1 2018. Even though the deal size comes as a 29% increase from H1 2017, the number of deals fell by 3%.
Eventful Days In Ecommerce
With the massive Walmart-Flikart deal being finalised in May, the ecommerce industry had an eventful H1 2018. However, the ecommerce industry witnessed a significant decline in interest from investors compared to 2017. In H1 2018, ecommerce startups raised $786.7 Mn from 49 deals. The value of deals witnessed a 58% decline compared to H1 2017 and the number of deals fell by 13%.
Healthtech Under The Weather
A lot of innovations by tech startups have seen increasing traction from investors in the healthtech sector as a result of the effective utilisation of AI and big data along with the launch of IoT innovations, among others.
In H1 2018, healthtech startups raised $180.02 Mn from 40 deals. This comes as 32% fall in the number of deals as compared to H1 2017 and a fall of 9% in the value of deals.
Consumer Services Looking Up
In H1 2018, consumer tech startups raised $382.48 Mn in 34 deals. This comes as a fall of 19% in terms of the number of deals compared to H1 2017; however, this is 120% increase in terms of the value of deals.
Liked what you read so far? We have a lot more insights and data in our full report, which covers funding trends in Tier I, Tier II, Tier III cities, across 14 industries and sectors segregated by the funding stage. It also has details on average ticket size, investor types, and a lot more, for the period of H1 2018.