E-tail funding in India plunges 89% in Q1 2017

India's e-commerce sector witnessed a decline of 89 per cent in private equity and venture capital investments during the first quarter of 2017 as it attracted merely $85 million as compared to $764 million in the same period last year, says a recent report. Only 11 deals were signed in the sector during the first quarter, as against 29 deals in Q1 2016.

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There were no equity investments done in March 2017 in the e-commerce sector barring a $4 million debt that was raised by BigBasket, says the report released by Ernst & Young (EY).

"E-commerce sector is undergoing a lot of churn and most businesses are in the recalibration mode, leading to low deal activity," said media reports quoting Mayank Rastogi, EY partner and leader for PE.

A number of e-commerce startups struggled during the last one year and ended up getting shut. A few companies also laid off employees to cut costs in a bid to turn profitable.

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