Summary of Conference Call on India's Internet Sector Industry Overview - The conference call focused on the **India Technology – Internet** sector, highlighting recent trends in **PE/VC funding** and the performance of the **internet market cap index** in India [1][3][13]. Key Points Funding Trends - **PE/VC funding** has shown signs of improvement in recent months, with a **123% increase** in total funds raised in October 2025, amounting to **US$1,387 million**, compared to **US$621 million** in September 2025 [28]. - The funding environment is dominated by **mid-stage (57%)** and **early-stage (43%)** investments, with limited late-stage activity [28][55]. - **E-commerce**, **fintech**, and **enterprise tech** were the main sectors attracting investments in October 2025 [28]. Market Performance - The **India internet market cap index** has corrected by **6%** since its peak in September 2025, contrasting with a **1% increase** in the NIFTY index [3][13]. - Other markets, such as **ASEAN** and **China**, have also experienced corrections of **11%** and **6%**, respectively, since their peaks [3]. - The recent correction in stock prices is viewed as healthy, especially after a **38% rally** in the internet index from mid-March to September 2025 [4]. Company Insights - **Eternal** is highlighted as a top pick, benefiting from an improved funding environment and focusing on customer acquisition and retention [5]. - Other companies like **MMYT** and **Cartrade** have shown positive performance post-earnings, while many large-cap stocks have corrected in the past month [4][23]. Performance Metrics - The **MAU/DAU** data indicates stable performance for **Paytm** in the fintech sector, while e-commerce players like **Flipkart** and **Amazon** saw a moderation in app download shares [29]. - The **internet index** has outperformed the NIFTY index since early 2023, but has started to decline from its peak in September 2025 [19][21]. Additional Insights - The divergence in stock prices within the internet sector remains high, indicating varying performance among different companies [1]. - The overall sentiment in the market suggests a cautious but constructive outlook, with opportunities for investment in companies demonstrating strong execution and growth potential [4][5]. Conclusion - The Indian internet sector is experiencing a transitional phase with improving funding trends and a healthy correction in stock prices. Companies focusing on customer acquisition and retention are likely to benefit in the current market environment.