Asian eCommerce Investments Are High, But Exits Seem To Be Flaccid [Report]
There were 29 exits by Asian e-commerce companies in 2012 and the momentum is continuing into 2013 with 14 exits year-to-date
India has seen its fair share of activity in the e-commerce space this year. Recently, e-commerce giant Amazon entered into the Indian Market. Indian online marketplace, Snapdeal raised $50 million from ebay and existing investors. Online consumer healthcare goods retailer, HealthKart raised $14 million from Intel Capital and Sequoia Capital. India has seen over 150 eCommerce deals since 2010 with 25 deals coming in 2013 already.
China is the largest player in the Asian e-commerce space, closely followed by India. According to a new report, there were 29 exits by Asian e-commerce companies in 2012 and the momentum is continuing into 2013 with 14 exits year-to-date. Indian e-commerce companies have been responsible for more than 4 of 10 exits over time and are almost 50% of exits in 2012 and 2013 to-date, the report said.
60% of Asia’s eCommerce exits with disclosed valuations have been for less than $50 million. The largest exits were to companies like China-based DangDang and VIPshop and India-based MakeMyTrip which all IPO’d, the ‘Asian eCommerce Report’ by CB Insights said.
Here are some key insights from the report;
The exit environment for Asian e-commerce companies has been flaccid. Exit activity has grown but the majority of the exits are small (<$50 million), clearly not venture-level exits.
Major deals to companies including 360buy.com and 55tuan.com saw Chinese e-commerce companies rake in $4.8 billion from investors since 2010.
Russia has seen 61 e-commerce deals since 2010 and 2/3 of the deals were to Apparel or Travel companies.
The most consistently large area of investment across Asia has been to Apparel & Accessories, which has consistently taken 1 out of 4 deals.
The top 5 active investors in Asia include Tiger Global Management, Accel Partners, Intel Capital, Sequoia Capital and IDG.
Tiger is doing deals across Asia but a vast majority of their e-commerce investment activity is in India.
You can get the report here.