BANGALORE: A number of young, companies still raising funds from venture capital investors are acquiring smaller firms to plug gaps in their businesses and ramp up fast, rather than build these from scratch. Among them the technology start-ups in the country rejoice at the acquisition of a young software firm report Business Standard. For instance ThinkPad, acquired by internet giant Yahoo earlier this week, two other Indian start-ups have gone ahead and made global buyouts, reflecting a maturity setting into the system.

Recently even the Delhi-based website performance testing start-up Wingify had acquired U.S.-based Concept Feedback, a community platform of user experience experts, for an undisclosed amount. The size of the two acquisitions is not known, and would perhaps be much smaller than the average in the technology segment.

“In the internet and software industry, the winner takes it all. So, it is vitally important for companies to focus on category leadership. Both these acquisitions are in some sense targeted at becoming the number one in the chosen category and that is a very good sign,” said Sharad Sharma, co-founder of software product think tank iSpirt. “I think these two acquisitions are a sign of a trend, where several players in narrow categories will look at becoming leaders in their chosen space, either through acquisitions or by building capacities organically.”

Both acquisitions are said to be aimed at strengthening the offerings of the Indian companies. Wingify’s acquisition, Concept Feedback, gives brands access to 26,000 website design experts, to receive recommendations on how to improve website elements to more efficiently achieve online business goals.

While the two acquisitions do bode well for young entrepreneurs in India, according to Yugal Joshi a practice director at Everest Group, the Indian start-up system is highly fragmented. So, acquisitions by a few entities might not necessarily reflect the maturity of an entire system.  “What this (acquisitions) certainly signifies is their (start-ups’) growing appetite and stature globally,” he said. “Also, that these start-ups have confidence in their abilities to raise the needed funds to finance this acquisition. This stems from the fact that they and their investors realize the fundamental strength in the business models of these start-ups.”