For startups and e-commerce companies in India, the ground beneath them has clearly shifted over the past two years. The frenzy around startups and funding which peaked in 2015 has clearly cooled off with valuations now heading towards saner levels. Vidhya Shankar, partner at Grant Thornton India LLP, feels the slowdown in funding is a blessing in disguise. “There’s a lot of dry powder in the market. People are taking a lot more time before taking a call. That sense of FoMO that used to exist two years back has certainly come down,” he says.
According to a Grant Thornton deal tracker report the first half of 2017 saw 248 startup PE funding deals worth $1,187 million down 36% from $1,858 million in the first half of 2015. PE investments in e-commerce increased marginally from $769 million to $799 million