BANGALORE: The time duration and financing rounds across hyper- growth Indian startups have steadily been declining over the years as entrepreneurs seek to accumulate funds to overthrow their rival in the competitive market, reports TOI.

According to data sourced from Tracxn, from the start of 2014, the number of startups who generated several rounds of funding within six months was around 38 tech companies. This in comparison to 2013, that had only 13 startups and in 2012 that gathered only four startups. Cash-guzzling Startups like e-commerce, taxi services and on-delivery startups has been the front runners for raising quick rounds.

While big e-tailers like Flip kart and Snap deal have dominated last year in raising funds every three-four months, younger startups like express delivery venture Grofers have made records by generating $45 million within a period of two months. Keeping with the pace, Mumbai-based food ordering venture TinyOwl received investments of around $20 million across two rounds in three months.

"This is indicative of the trend that companies which are executing well or are clear winners have no dearth of capital," says Abhishek Goyal, co-founder, Tracxn!, a business which gathers information about  Indian startups.

Albinder Dhinda, whose grofers practically generated continuous rounds from Tiger Global and Sequoia Capital, believes this is a task of the macro market outlook. "We are in an up cycle; I think the velocity right now is a function of the depth of market and mobile penetration that has come up in the last few years. The battleground will move as a lot of these early stage companies will mature and consolidation will happen."

Dhindsa rejects the ideology that several startups are building funds even when there is no immediate requirement. "People are stockpiling for growth in a capital-rich environment. Everything from talent to marketing is expensive in these times," he said.

“VCs hint that companies are backing up incase their funding runs dry. This also suggests that founders are becoming weak with each round of funding. However, on the condition that their ownership value builds, entrepreneurs remain content.  Hyper-growth startups especially several tech sectors are spending lavishly to fortify their leading status. Moreover investors think that market leaders will maintain the vast leadership premium” said Tarun Davda, director at Matrix Partners, an investor in Ola, Quikr and TinyOwl.

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