HYDERABAD: Mergers and acquisitions have picked up significantly in the startup space with 48 deals in the past three months, according to Xeler8, a platform that tracks startup activity in the country. This is in line with the trend towards consolidation among startups.
Whether it is a strategic move to eliminate competition, or to take advantage of the conducive market situation, startups are looking at acquiring other ventures.
Online fashion marketplace Voonik Technologies recently made three acquisitions — Zohraa, a marketplace for designers and boutiques, Styl and Picksilk — that helped it enter the premium e-commerce segment. “It wouldn’t have been possible to acquire them in some other market,” said Sujayath Ali, co-founder of Voonik. “They were also looking for a chance of M&A because they weren’t able to scale up.”
Bengaluru-based online gifting platform Giftxoxo recently acquihired BookMyInterest, a marketplace for hobbies and leisure activities.
Experts in the field say there are a lot of small deals in the markets, and soon mid-size deals would pick up. “Small deals are a good thing, but there are no mid-size deals at the moment,” said Sanat Rao, a fellow at iSPIRT M&A Connect programme. “Mergers and acquisitions are higher than what they used to be a few years ago, but we need more mid-size deals, which I think will pick up soon.”