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B2B Start-ups Are Still Receiving Funding
Sep 6, 2016

India's startup boom seems to be slowing down. We have written about this before. But now there are numbers available in the public domain. We are all aware of the woes of the likes of Flipkart. Many other consumer centric startups have failed Tiny owl certainly comes to mind.

Now, as an article in The Financial Express has highlighted, the pain has spread to the B2B space. According to Tracxn, funds invested in these players have fallen by over 50% YoY. Some like Intelligent Interfaces and Townrush, have been forced to shut down. This despite the fact that B2B players have better business models that B2C firms.

This trend highlights the extent to which VC funding has driven Indian startups. Many of these firms had nothing unique to distinguish themselves. When the funding dried up, the growth came to a halt.

However, all is not lost. B2B startups that have a viable business are still getting funding. We believe, this is a healthy sign for the future of Indian startups.

Data Source: Financial Express

This Chart Of The Day was published in The 5 Minute WrapUp - The Importance of Corporate Role Models

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