E-tail funding in India plunges 89% in Q1 2017
today May 3, 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.
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.
Copyright © 2020 Fibre2Fashion. All rights reserved.