Flipkart and Snapdeal funding has raised the par and drove a record Q1 funding for tech investments in India. The eCommerce giants has contributed and drove these investments mostly.

According to a report by CBInsights fundsare flowing into Indias tech ecosystem, with Q1 2014 hitting a multi-year high of nearly $427M in funding across 64 deals.

Total Tech Investment Trend

eCommerce leads in funding and trails in deals. This involves cumulative series E funding of $360 million for Flipkart and $150 million series D and E for Snapdeal. In addition to these funding both these companies raised additional funding in 2014 as well. Flipkart raised $210 million in a Series F funding led by investors likeIconiq Capital, Naspers, Tiger Global Management, DST Global. Snapdeal raised $233 million in a series of funding led by investors likeSaama Capital, eBay, Nexus Venture Partners, Kalaari Capital, Intel Capital, Bessemer Venture Partners as well asTybourne, PremjiInvest, Myriad, BlackRock, Temasek Holdings.

The eCommerce accounted for 72% of all funding in the last four quarters.

Top 20 India Tech investments by Sub industry

Education and Training is one area that we need to look for in the coming years. There has been a lot happening in this sector. We have seen many new deals and funding for education based startups.

Some of the notable funding in the education and training sector are the following:

  1. Edu Startup Zaya Labs Gets Investment From Pearson
  2. Chennai based Everest Edusys has raised R5.7 Cr in Series A round from LokCapital and Chennai Angels
  3. Bangalore based Foradian Technologies, a cloud based solution for education institution has secured $2 Mn funding from FabIndia MD, William Bissell.
  4. Pune based education startup Function Space has raised an undisclosed amount of funding in seed round from Nexus India
  5. Noida-based iProf Pvt Ltd, an e-learning solutions provider, has raised $9Mn in Series B funding from DMGI and existing investors, Norwest Venture and IDG ventures
  6. Existing investor Info Edge has made an additional investment of R10 Cr in Applect Learning owned online education portal meritnation.com

(References: DealCurry.com)

Business Intelligence could be the another area that might attract investors in the future. The data analytics and crunching could see lot more traction in the coming years.

Bangalore – The Silicon Valley of India

Bangalore has garnered lot of attention through some of the most popular startups like Flipkart, Myntra etc. Bangalore accounted for 39% of total funding. The national capital New Delhi came second with 23% followed by Mumbai and Chennai. Bangalore’s credit might go to Flipkart and Myntra whose deals accounted for nearly 31% of all funding in India.

India Tech funding by city

500 startups is the most active institutional investor with over 20 investments over the last four quarters followed by Blume Ventures and Accel Partners.Kalaari Capital, Tiger Global Management and Nexus Venture Partners followed the top three.

Some of the interesting startups funded by 500 startups includeSchoolAdmissions.in,InterviewMaster.in, PriceBaba.com, Ordr.in. Blume Ventures has invested in startups like CareerVita, Cherish, DataWeave, Exotel, Explara.com, GharPay, Reviws42, TaxiforSure.

Accel Partners has invested in companies like Flipkart, Bookmyshow, babyoye,CommonFloor,Eventifier, FreshDesk, Myntra,Taxi For Sure.

Hope 2014 will be much more brighter year for the startup ecosystem in India. With eCommerce booming in India along with education and analytics sectors, we can hope that more and more investors will be attracted to invest in India and we could see more jobs created from these startups and contribute to the economy as well.

Let me know your thoughts on the startup ecosystem in India and the funding scenario.

(Image References: CBInsights)