<article>India’s tech ecosystem is growing rapidly, marked by increased deal flow and rising exit activity.</article>

India’s tech ecosystem is growing rapidly, marked by increased deal flow and rising exit activity.
While most exits were through the merger and acquisition route, in 2017, the number of exits through public listings or IPOs has shot up, according to a <a style="color: #000080;" href="https://www.cbinsights.com/research/india-tech-mergers-acquisitions-ipos" target="_blank" rel="noopener noreferrer">recent report</a> by US-based research firm <a style="color: #000080;" href="http://dealstreetasia.com/tag/cb-insights" target="_blank" rel="noopener noreferrer">CB Insights</a>.
According to the report, the number of first exits of Indian tech companies has more than tripled from 52 in 2012 to 184 last year. Between 2015 and 2016, exit activity has remained the same, but the number of IPOs rose 1 to 4. These include  IT services company Larsen &amp; Toubro Infotech and electric equipment manufacturer HPL Electric &amp; Power.
In 2017 till date, there have been 101 exits with 10 IPOs, of which six offerings hit the market in the last two months.
<a href="https://media.dealstreetasia.com/uploads/2017/08/indiatechexitsannual.png"><img loading="lazy" decoding="async" class="alignnone wp-image-79705" src="https://media.dealstreetasia.com/uploads/2017/08/indiatechexitsannual.png?resize=640,417" alt="" srcset="https://media.dealstreetasia.com/uploads/2017/08/indiatechexitsannual.png?w=948 948w, https://media.dealstreetasia.com/uploads/2017/08/indiatechexitsannual.png?resize=300,196 300w, https://media.dealstreetasia.com/uploads/2017/08/indiatechexitsannual.png?resize=768,501 768w" sizes="(max-width: 750px) 100vw, 750px" data-recalc-dims="1" /></a>
Well-funded companies that delivered good returns for investors include <a style="color: #000080;" href="http://dealstreetasia.com/tag/videocon-d2h" target="_blank" rel="noopener noreferrer">Videocon d2h </a>and <a style="color: #000080;" href="http://dealstreetasia.com/tag/ortel-communications" target="_blank" rel="noopener noreferrer">Ortel Communications</a> &#8211; which topped the list &#8211; followed by consumer internet firms, <a style="color: #000080;" href="http://dealstreetasia.com/tag/housing" target="_blank" rel="noopener noreferrer">Housing.com</a>, <a style="color: #000080;" href="http://dealstreetasia.com/tag/myntra" target="_blank" rel="noopener noreferrer">Myntra</a>, and <a style="color: #000080;" href="http://dealstreetasia.com/tag/yatra" target="_blank" rel="noopener noreferrer">Yatra</a>.
Videocon d2h raised the most money before it merged with Dish TV in 2016, at $300 million, while Ortel Communications, raised $148 million before its IPO.
In January this year, <a style="color: #000080;" href="http://dealstreetasia.com/tag/news-corp" target="_blank" rel="noopener noreferrer">News Corp</a>-backed real estate portal <a style="color: #000080;" href="http://dealstreetasia.com/tag/proptiger" target="_blank" rel="noopener noreferrer">PropTiger</a> announced that it has acquired Mumbai-based <a style="color: #000080;" href="http://dealstreetasia.com/tag/housing" target="_blank" rel="noopener noreferrer">Housing.com</a> in an all-stock deal, and will receive $50 million in fresh funds from News Corp.’s REA Group Ltd and $5 million from<a style="color: #000080;" href="http://dealstreetasia.com/tag/softbank" target="_blank" rel="noopener noreferrer"> Softbank Group</a>.
While Myntra had raised $114 million before it was sold to e-commerce major <a style="color: #000080;" href="http://dealstreetasia.com/tag/flipkart" target="_blank" rel="noopener noreferrer">Flipkart</a> in 2014.
This year was also slated to witness one of the biggest exits in the startup space given the six-month-long deal negotiation between Flipkart smaller rival <a style="color: #000080;" href="http://dealstreetasia.com/tag/snapdeal" target="_blank" rel="noopener noreferrer">Snapdeal</a> for over $900 million. However, the talks abruptly fell through with Snapdeal backing out form the deal, wanting to revive itself.
<a href="https://media.dealstreetasia.com/uploads/2017/08/10-most-funded-cos.png"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-79706" src="https://media.dealstreetasia.com/uploads/2017/08/10-most-funded-cos.png?resize=640,498" alt="" srcset="https://media.dealstreetasia.com/uploads/2017/08/10-most-funded-cos.png?w=714 714w, https://media.dealstreetasia.com/uploads/2017/08/10-most-funded-cos.png?resize=300,234 300w" sizes="(max-width: 714px) 100vw, 714px" data-recalc-dims="1" /></a>
According to the CB Insights report, Indian tech exits have grown increasingly diverse since 2012. Among the six industries that saw the most exits since 2012,  advertising, sales and marketing industry brought in the highest number, with 37 exits in that time period. The IT solutions &amp; software development industry came in second at 23 exits.
Market place startups have marched their way to the industry with most exits in the last two years. Exits among marketplace startups have boomed, from 1 in 2012 to 11 in 2015 and 18 in 2016. The industry leads the way in 2017 with 9 exits.
Food and grocery sector exits have also seen a rise recently, up from one exit in 2012 to 12 in 2015 and 10 in 2016. <a style="color: #000080;" href="http://dealstreetasia.com/tag/innerchef" target="_blank" rel="noopener noreferrer">InnerChef </a>accounted for two of those acquisitions, with its purchase of breakfast delivery startup <a style="color: #000080;" href="http://dealstreetasia.com/tag/eatongo" target="_blank" rel="noopener noreferrer">EatOnGo</a> and food truck company Flavour Labs.
<a href="https://media.dealstreetasia.com/uploads/2017/08/indiaindustrytopexits.png"><img loading="lazy" decoding="async" class="alignnone wp-image-79707" src="https://media.dealstreetasia.com/uploads/2017/08/indiaindustrytopexits.png?resize=640,468" alt="" srcset="https://media.dealstreetasia.com/uploads/2017/08/indiaindustrytopexits.png?w=1326 1326w, https://media.dealstreetasia.com/uploads/2017/08/indiaindustrytopexits.png?resize=300,220 300w, https://media.dealstreetasia.com/uploads/2017/08/indiaindustrytopexits.png?resize=768,562 768w, https://media.dealstreetasia.com/uploads/2017/08/indiaindustrytopexits.png?resize=1024,750 1024w" sizes="(max-width: 750px) 100vw, 750px" data-recalc-dims="1" /></a>
Also Read:
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/yatra-caratlane-deals-put-spotlight-back-on-vc-exits-47905/" target="_blank" rel="noopener noreferrer">India: Yatra Online, CaratLane deals put spotlight back on VC exits</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/ipo-pe-exit-route-asia-bain-suvir-varma-77076/" target="_blank" rel="noopener noreferrer">IPOs not the best PE exit route right now in Asia: Bain &amp; Co’s Suvir Varma</a>

The number of first exits of Indian tech firms has increased from 52 in 2012 to 184 in 2016. In 2017 till date there have been 101 exits, with 10 IPOs.

Indian tech startups see rise in exits, IPO route gains momentum

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Indian tech startups see rise in exits, IPO route gains momentum

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief