A total of $75M was invested in the B2B Commerce space in 2016 till date, with contributions from large ticket deals such as IndiaMart’s $22.2M raise
The B2B Commerce space has gotten off to a phenomenal start in 2016, when it comes to raising investments, with the year already witnessing 60% of the segment’s total funding. This total of $75M invested in 2016 till date has seen contributions from large ticket deals such as IndiaMart’s $22.2M raise, Power2SME raising $20M, JustBuyLive’s Series A $20M raise and Ofbusiness picking up $5M.
This already sets an all-year high in terms of dollars invested, beating our 2015’s $13M total raise. Together, both the years cumulative funding accounts for 77% of the total funding raised in B2B commerce. With so much time remaining in the year, one can certainly expect the funding in the space to further surge.
What is also noteworthy is the fact that, apart from larger funding rounds, the last three months have also witnessed ~328% more funding rounds as compared to the entirety of 2015.
According to the Tracxn Report on B2B Commerce, over $124M has been invested in the sector since 2006. The B2B commerce space has seen exponential growth in investments and funding with major investments being in the Marketplace space.
Entrepreneurial Activity Increase in 2015
In terms of the number of companies founded in the sector, 2015 witnessed its own surge, witnessing a close to 100% increase over the last year. 2016 YTD has seen the formation of 12 companies.
Among these companies, a majority have been founded in the marketplaces space. Besides witnessing a slew of new companies, the segment has also seen a decent amount of funding.
Horizontal Marketplaces is the most funded segment
Within the business models of B2B Commerce, the Horizontal marketplace segment has received the most VC with startups raising $59.7M. Within the sector, the Group buying segment is witnessing high funding with one player i.e., Power2SME performing exceptionally well and driving up the bubble in total funding.
Moreover, Investor interest towards newer sectors such Grocery B2B, which consists of Ninjacart which has so far raised $3M, has also been picking up. The Industrial segment has also been gaining interest with the Industrial Tools and Industrial Supplies subsegments seeing a decent amount of funding.
Accel Partners, Alpha Capital, and Kalaari Group are the most active investors
Accel Partners stands out as the most active investor with investments in Power2SME, Moglix, and Bizongo. India-based Kalaari Group follows, having funded Power2SME, IndustryBuying. Alpha Capital portfolio includes JustBuyLive.
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