Funding and Investment
Several Indian startups have recently secured substantial funding. Avataar.me raised $7 million from Sequoia India, while GIC and Sequoia participated
in Razorpay's $100 million round, potentially valuing the company at $1 billion. FreshToHome is reportedly in discussions for a fresh round of $130 million in funding, and Pepper Content raised $4.2 million led by Lightspeed India. This indicates a robust investment climate and sustained investor confidence in Indian startups. However, investors are showing caution towards young startups with Chinese capital. Also, SoftBank has joined the blank check binge, armed with billions in cash.
Growth and Expansion
Indian startups are expanding their reach and diversifying their offerings. Flipkart and Walmart injected an additional $30 million into Ninjacart. Tata Group is evaluating M&A opportunities to scale up its e-commerce play. Online brands are experiencing higher growth on their own channels and apps compared to platforms like Flipkart and Amazon. Meru Cabs launched an office commute service, aiming to tap into the growing demand for corporate transportation. Food delivery volumes in India reached pre-Covid-19 peaks, as noted by Zomato's Deepinder Goyal. These moves showcase the dynamic growth strategies employed by Indian startups.
E-commerce Landscape
The e-commerce sector is experiencing significant activity. Flipkart and Amazon's staff are priming for big sale days despite the challenges posed by Covid-19. Policies to revamp e-gifting options are underway for the upcoming festive season. Early Diwali is anticipated as Covid-hit banks offer cracking deals on e-commerce platforms. This suggests a competitive environment and the ongoing efforts by e-commerce players to capture consumer spending. The launch of the e-gifting options could contribute to this growth.
