Both investors and companies now talk of a conspicuous cooling of sentiment , amid fears that the funding rush, that was powered in part by investors such as Japan’s SoftBank and New York-based Tiger Global, has led to widespread overvaluation.
Deepinder Goyal had a moment of horror last year when he received an email from a would-be entrepreneur seeking funding. “[The idea] was Uber for water: if you want a bottle of water, I have an app for you and I can deliver it within 10 minutes,” says Mr Goyal, founder of Zomato, an Indian restaurant search platform. “On a bottle of water the margin is about two rupees . . . there is no way that can work. He was looking for a $1m seed round at an $8.5m valuation. That is what we had created.”