Summary of the Conference Call on India's Internet Sector Industry Overview - The conference call focused on the **India Technology – Internet** sector within the **Asia Pacific** region, highlighting recent trends in **PE/VC funding** and the performance of the **internet market cap index** in India [1][8]. Key Points 1. **Funding Trends**: - There has been an improvement in **PE/VC funding** trends over the past few months, with a notable uptick in October 2025, where total funds raised reached **US$1,387 million**, a **123% increase** from **US$621 million** in September [29][32]. - Despite the month-over-month increase, the funding remains down on a trailing twelve-month (TTM) basis, indicating a mixed outlook for the funding environment [8][14]. 2. **Market Correction**: - 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 during the same period [3][14]. - This correction is viewed as healthy, especially after a significant rally of **38%** from mid-March to September 2025 [4][14]. 3. **Performance of Key Stocks**: - Major stocks like **MakeMyTrip (MMYT)** and **Eternal** experienced sharp corrections post-earnings, while some smaller and mid-cap stocks have shown positive returns after their quarterly results [4][24]. - **Eternal** is highlighted as a top pick due to its strong focus on customer acquisition and retention, with significant app downloads and monthly active user (MAU) share [5][24]. 4. **Sector Maturity**: - Different segments of the internet market are at varying stages of maturity. For instance, **Quick Commerce** is still in a growth phase, suggesting that focusing on customer acquisition is crucial for companies in this space [5][24]. 5. **Comparative Market Performance**: - The Indian internet index has underperformed compared to the US internet index, which reached new highs, while other markets like **China** and **ASEAN** have also seen corrections of **6%** and **11%**, respectively [3][22]. 6. **Investment Focus**: - Investors are currently prioritizing growth and profitability, with a notable interest in mid-stage funding, which accounted for **57%** of the total funding activity in October [29][56]. - Categories such as **e-commerce**, **fintech**, and **enterprise tech** are highlighted as the main investment attractions for the month [29][35]. Additional Insights - **MAU/DAU Data**: - Third-party data indicates that **Paytm's** MAU/DAU share remained stable, while app download shares for major e-commerce players like **Flipkart** and **Amazon** moderated month-over-month [30][62]. - **Stock Performance**: - Most internet stocks have underperformed compared to the **Sensex** in the past month, with only a few exceptions like **Paytm**, **Cartrade Tech**, and **Blackbuck** showing positive performance [24][26]. Conclusion - The Indian internet sector is experiencing a complex landscape characterized by a recent correction in stock prices, improving funding trends, and varying stages of maturity across different market segments. Investors are advised to focus on companies with strong execution and growth potential, particularly in the e-commerce and fintech spaces.