News: Is the funding boom ending for start-ups?

Others

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.

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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Topics: Others, #Corporate

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