It seems the euphoria in the public market has also gripped the private equity (PE) space. PE and venture capital investments hit an all-time high in 2017 as investors pumped in a record $24 billion, 41% higher than the previous high seen two years back. But unlike 2015, what stood out last year was the mega bets that investors were willing to make – be it Softbank’s $2.5 billion bet on Flipkart or Tencent-led billion dollar investment in Ola. Flush with funds, Softbank, Tencent and Alibaba are making outsized bets on homegrown consumer technology companies. With growth tapering off in China, it is crucial for Alibaba and Tencent to find their next big market. While they are placing their bets on India, achieving a similar scale and profitability in an open and competitive market, unlike China, will be super challenging. While these investors have given the much-needed exit to early-stage investors, with no clear path to profitability, they’ve clearly not bought themselves a bargain.