Startup space gears up for consolidation with 48 deals in three months

The startup space has started showing signs of consolidation with 48 deals in the past three months, according to Xeler8, a platform that tracks startup activity in the country. 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.

The deals include online fashion marketplace Voonik Technologies’ recent 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.

Most of the acquisitions in the market have been to acquire a technology they otherwise would have to work towards, as funds flow from bigger startups into the smaller ones. Voonik officials said the company is now looking to acquire from the fields of machine learning and artificial intelligence. Bengaluru-based online gifting platform Giftxoxo recently acquired BookMyInterest, a marketplace for hobbies and leisure activities.

InnerChef, a Gurgaon-based food technology startup, has acquired two firms in the same space to expand their presence to other cities. Its co-founder Rajesh Sawhney said it is looking at more acquisitions in the future.

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.