Article from WeChat public account:Zhixiang.com (ID:passagegroup), author: Xin weeks, the subject map from: Oriental IC
The huge amount of financing is no longer, and the financial technology is cold, but the amount of financing of more than 10 million US dollars has increased significantly.
The numbers speak. India is living in the golden age of venture capital and private equity funds. Countless institutions are busy throwing money. The scale of A round of financing has expanded to 100 million US dollars. Some industries fell into the winter overnight.
But venture capitalists who are traders are often happy to hide behind the scenes. They like to let their investment (whether successful or failed) instead of talking to them. A large number of investment announcements are issued every day, but it is difficult to observe the patterns and strategies followed by venture capitalists.
We collected data from 2009 to 2019(to September 15th) during this period of venture capital investment, a glimpse The trend of the Indian venture capital market. The data comes from research company Zinnov and data analysis platform Tracxn.
The following are some of the big trends we’ve seen from the data:
2019: The size of venture capital funds has doubled
Interestingly, among the top 50 investors, (by transaction volume), venture capital participates in more than $10 million in investment The number has increased by 38% over last year. ThisIt is also a comparison of the first nine months of 2019 with the full year of 2018.
Illustration: The map contains all the investments, including lead and participation.
Among the new investors, the biggest investment to date is the New York asset management company Falcon Edge Capital, which made only one investment in 2018 and has been shot five times this year.
In addition to investments in unicorn companies such as travel platform Ola and classified advertising platform Quikr, Falcon Edge’s Indian portfolio also includes financial technology (Mswipe) , AI and real estate.
B Capital Group is a fund company supported by the Boston Consulting Group (Boston Consulting Group), usually investing in an early stage of expansion (ie, Round B and Round C) B2B. In the B2B space, they invested in packaging company Bizono and freight service provider BlackBuck. They are also investors in the MSipe, a PoS service provider.
China-based Gaochun Capital Group (Hillhouse Capital Group) has almost no investment until 2018. But this year, it has participated in five investments, including two rounds of large-scale financing – B2B e-commerce platform Udaan (withAltimeter, Tencent, etc. invested a total of 585 million US dollars), and credit card management platform Cred ($120 million). Cred is a company specializing in the field of financial technology, providing convenience for credit card bill payment.
Most active investor
The venture capital giants like Sequoia and Accel seem to be absent from growth. This is because they have been very active in India and the annual trading growth rate is unlikely to reach three digits.
The following are the top 10 most active investors in India in 2019:
For the past three years, Sequoia Capital and Accel have been sitting in the top three positions. But it is indeed possible to observe that after the deliberate slowdown in 2017 and 2018, and the private equity investment leader Lee Fixel left in March 2019, Tiger Global is rapidly “returning”. In addition, SAIF’s investment has also slowed significantly, from the third place last year to the seventh place this year.
The decline of the huge financing era
Generally speaking, financing of more than $500 million is rare. Since 2017, only six companies have been able to do this, three of which appeared in 2017, and so far only one company appeared in 2019. However, after the high-valued Unicorn IPO was blocked, the number and size of such large-scale financing decreased.
In addition to Udaan’s $585 million financing (announced in October 2019), the prospect of the unicorn company this year is quite bleak. Udaan’s round of financing is also an indicator of venture capital firms’ shift to B2B startups.
In 2016, the Indian government allowed 100% of foreign direct investment to enter the B2B online market. When investors started looking for the next Flipkart in the B2B space, B2B also began to divide the cake in venture capital. Udaan defeated rivals Ninjacart and Jumbotail in the B2B competition. It raised enough funds to become India’s fastest growing company and also entered the Unicorn Club.
Top track feng shui rotation
Whether it is the total amount of funds raised or the number of transactions, the consumption of the InternetIt has always been a hot area. The decline in investment in the financial technology sector is surprising. In 2017, financial technology was once able to attract the second largest investment, but it could not enter the top five in 2018 or 2019.
Since 2018, the rapid rise of educational technology has become apparent. The breakthrough industry in 2019 seems to be health technology, and it is in the top three for the first time.
In the consumer Internet arena, Flipkart’s J-round financing in August 2017 raised $1.5 billion from Softbank’s Vision Fund, Tencent and other companies, which is a high point. Since then, both the number of transactions and the amount of financing, the track has been reduced in 2018 and 2019. These clear signs indicate that this track has reached the point of expansion and integration.
In the field of financial technology, since Paytm conducted a round of $1.4 billion in financing in 2017, there have been few other storms. This is because two other important players in this field – Google Payments and PhonePe – have strong capital support. Coupled with the credit crunch in India’s non-bank lending market, those financial technology lending companies also seem to have lost their appeal.
In the food technology sector, the $1 billion raised by Swiggy in December 2018 triggered a gold rush in the takeaway circuit. In the same year, its main competition, Zomato, raised $200 million and $210 million from Ant Financial and Alipay, respectively. In addition to the two companies, “Cloud Kitchen Chain Brands such as RebelFoods($3.0158 billion) and Freshmenu ($24.45 million) also raised funds.
In the field of educational technology, Byju’s raised 3.26 from Naspers in December 2018.400 million US dollars. Subsequently, other educational technology startups also raised considerable funds, breaking people’s stereotypes – education is an industry that is difficult to attract large-scale venture capital.
In the field of health technology, health and fitness applications Curefit has become a leader in the health field. The app offers a wide range of services, from offline fitness classes to online videos to healthy foods. After raising $120 million in 2018, the company raised another $75 million in July 2019. The healthcare industry is dominated by online markets such as 1mg and Netmeds.
Article from WeChat public account:Zhixiang.com (ID:passagegroup) author: Zhou Xin