Indian Startup Funding Report November 2016: The Month of All Lows

The month of November has been one of the least performing months that one could observe in the funding scenario of the year 2016. Deals and funding have been quite low. M&A has fallen by 43%, as compared to last month. Even investors taking part in funding rounds have fallen to 112 – 25% less as compared to October 2016’s.

Game Of Cities

City-wise, the funding scenario remains neck to neck when it comes to Bengaluru and Delhi. However, Delhi emerged victorious when it came to total funding received for the month, it is more than 2 times higher as Bengaluru. Bengaluru, however, bagged the highest number of deals. Surprisingly Chennai grossed $61 Mn in funding, almost four times of total funding amount in Mumbai, owing to the late stage fundings of FreshDesk and Zarget.

Stage-wise Comparison: Late-stage Drops The Ball Again

Funding has been observed to have dropped drastically in all the stages  as compared to November 2015, except for Series A which has been almost the same. Seed funding has dropped by 20% both in terms of deal and amount. In Pre-Series AsA round deals have come down by 70% while the amount of funding has fallen by a massive 93%. The late-stage funding crunch observed early this year, has been observed to keep falling. Late-stage funding drop has been by 76%.

SaaS: The Dark Horse Of Funding

Ecommerce is still the favourite sector for investment. Surprisingly, SaaS has been observed to have secured the highest amount of funding – $149 Mn. This has s been due to Freshdesk and Rivigo together grossing to $130 Mn. Although Freshdesk and Rivigo have been the big tickets of November 2016, it is nowhere close to the big tickets of November 2015: Ola secured $500 Mn and Grofers received $120 Mn.

All in all, 76 startups funded with a total disclosed funding of $276 Mn.

 

 

[Infographic by Satya Yadav]