Is the funding boom ending for start-ups?

Flipkart Ltd’s negotiations with new investors to raise funds has failed to make progress since talks began in March while Snapdeal was forced to settle for a valuation that was lower than what it initially sought, a sign that the go-go days of easy money and eye-popping valuations for India’s e-commerce start-ups may be nearing an end. The rush of funding seems to be ebbing after a year-long period that saw investors pouring in billions of dollars into Indian start-ups. Unlike the second half of last year, when deals were being closed sometimes in a matter of two-three weeks, investors have started to step back, take stock and ask questions about how consumer Internet start-ups plan to make money before writing cheques, according to investors, analysts and entrepreneurs.

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