(This was my response to a question on Quora)
Depends on several factors… could be anywhere between INR 2-5 cr. – 5cr. (i.e. USD 350,000 –USD 800,000).
Valuation range will largely depend on the following factors:
- Who is doing it : Team – if it is a bunch of college students with no prior business or work experience, it will be in the lower end of the range… if it is a team of experienced professionals or entrepreneurs, it is likely to be at the higher end of the range. Of course, if it is a team os super-star, proven entrepreneurs/professionals with significant domain expertise and experience, the valuation could be much higher…. and actually may not be an angel round.
- Size of the opportunity: Larger the opportunity, higher the valuation.
- Does the product/service have a reasonable chance of dominating that market: If the answer is a resounding yes, the valuation will be higher.
I must add here that, if the opportunity is large and the team is competent and committed, the chances of getting funded are higher even if the product is not great. On the other hand, even with a great product and a large market, if the team is weak, they are unlikely to get funded.