印度科技-互联网_融资走出低迷期-India Technology – Internet_ Funding coming off a lull_

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.