<article>Venture capital (VC) investments in India plunged to a three-year low in the second quarter of 2017. Private equity (PE) investments, however, showed strong growth, rising 62 per cent higher on a year-on-year basis.  </article>

Venture capital (VC) investments in India plunged to a three-year low in the second quarter of 2017. Private equity (PE) investments, however, showed strong growth, rising 62 per cent higher on a year-on-year basis.  
According to data provided by research firm Venture Intelligence, venture capital investments slid to 78 deals worth $275 million during the three months ended June 2017, 25 per cent lower compared to the same period in 2016.
VC activity in Q2 2017 was also 7 per cent lower than the previous quarter, which recorded 84 deals worth $349 million.
<a href="https://media.dealstreetasia.com/uploads/2017/07/vc-investments.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-76792" src="https://media.dealstreetasia.com/uploads/2017/07/vc-investments.png?resize=640,361" alt="" srcset="https://media.dealstreetasia.com/uploads/2017/07/vc-investments.png?w=900 900w, https://media.dealstreetasia.com/uploads/2017/07/vc-investments.png?resize=300,169 300w, https://media.dealstreetasia.com/uploads/2017/07/vc-investments.png?resize=768,433 768w" sizes="(max-width: 700px) 100vw, 700px" data-recalc-dims="1" /></a>
While seed rounds saw a sharp decline, falling 53 per cent year-on-year to 22 transactions in Q2 2017, Series A investments were the only ones to buck the trend. According to Venture Intelligence data, Series A rounds, or the first rounds of institutional investment, rose 15 per cent in the April-June quarter to 39 transactions.
The largest VC investment during Q2 2017 was <a style="color: #000080;" href="http://dealstreetasia.com/tag/sequoia-capital" target="_blank" rel="noopener noreferrer">Sequoia Capital</a>’s $20-million funding for shared office space provider <a style="color: #000080;" href="http://dealstreetasia.com/tag/awfis" target="_blank" rel="noopener noreferrer">Awfis</a> in its Series A round. This was followed by <a style="color: #000080;" href="http://dealstreetasia.com/tag/oneassist" target="_blank" rel="noopener noreferrer">OneAssist</a> raising $18 million in its Series C round of funding from Sequoia Capital, <a style="color: #000080;" href="http://dealstreetasia.com/tag/lightspeed" target="_blank" rel="noopener noreferrer">Lightspeed</a> and Moonstone, among others.
<a href="https://media.dealstreetasia.com/uploads/2017/07/vc-round.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-76793" src="https://media.dealstreetasia.com/uploads/2017/07/vc-round.png?resize=640,395" alt="" srcset="https://media.dealstreetasia.com/uploads/2017/07/vc-round.png?w=900 900w, https://media.dealstreetasia.com/uploads/2017/07/vc-round.png?resize=300,185 300w, https://media.dealstreetasia.com/uploads/2017/07/vc-round.png?resize=768,474 768w" sizes="(max-width: 700px) 100vw, 700px" data-recalc-dims="1" /></a>
Among sectors, the technology space continued to dominate, garnering 69 per cent of VC investments. However, tech firms failed to sustain investors&#8217; interest to year-ago levels; VC investments in tech declined 33 per cent to 54 deals worth $180 million in Q2 2017.
Large tech investments in Q2 included e-commerce search software company <a style="color: #000080;" href="http://dealstreetasia.com/tag/unbxd" target="_blank" rel="noopener noreferrer">Unbxd</a> raising $12.5 million and insurance marketplace <a style="color: #000080;" href="http://dealstreetasia.com/tag/coverfox" target="_blank" rel="noopener noreferrer">Coverfox</a> bagging $11 million. Other notable deals were logistics tech firm <a style="color: #000080;" href="http://dealstreetasia.com/tag/fortigo" target="_blank" rel="noopener noreferrer">Fortigo</a>&#8216;s $10-million round and edtech company <a style="color: #000080;" href="http://dealstreetasia.com/tag/unacademy" target="_blank" rel="noopener noreferrer">Unacademy</a> raising $10 million from Sequoia and SAIF Partners.
<img loading="lazy" decoding="async" class="aligncenter wp-image-76795" src="https://media.dealstreetasia.com/uploads/2017/07/vc-sectors.png?resize=640,299" alt="" srcset="https://media.dealstreetasia.com/uploads/2017/07/vc-sectors.png?w=900 900w, https://media.dealstreetasia.com/uploads/2017/07/vc-sectors.png?resize=300,140 300w, https://media.dealstreetasia.com/uploads/2017/07/vc-sectors.png?resize=768,358 768w" sizes="(max-width: 700px) 100vw, 700px" data-recalc-dims="1" />
“While the challenges in consumer internet and mobile sector had become quite apparent last year, they are beginning to reflect quite starkly in terms of VC investment figures during 2017,” said Arun Natarajan, founder &amp; CEO of Venture Intelligence.
“On the other hand, VCs have displayed sustained interest in fintech and enterprise software startups right through the year. Given the plentiful availability of capital in the system, once the dust settles on the consumer internet front, newer themes like healthtech and deep tech should emerge stronger on the radars of investors,” he added.   
<a href="https://media.dealstreetasia.com/uploads/2017/07/vc-themes.png"><img loading="lazy" decoding="async" class="wp-image-76796 aligncenter" src="https://media.dealstreetasia.com/uploads/2017/07/vc-themes.png?resize=640,307" alt="" srcset="https://media.dealstreetasia.com/uploads/2017/07/vc-themes.png?w=900 900w, https://media.dealstreetasia.com/uploads/2017/07/vc-themes.png?resize=300,144 300w, https://media.dealstreetasia.com/uploads/2017/07/vc-themes.png?resize=768,369 768w" sizes="(max-width: 700px) 100vw, 700px" data-recalc-dims="1" /></a>
<h3 style="text-align: justify;">PRIVATE EQUITY INVESTMENTS</h3>
Private equity investments had another strong quarter, crossing $5 billion for the third quarter in a row.
According to Venture Intelligence data, private equity firms invested about $5.4 billion across 124 deals during the quarter ended June 2017. While the investment amount was 62 per cent higher than a year ago, funding was 9 per cent lower than Q1 of 2017.
<a href="https://media.dealstreetasia.com/uploads/2017/07/pe-quarter.png"><img loading="lazy" decoding="async" class="wp-image-76797 aligncenter" src="https://media.dealstreetasia.com/uploads/2017/07/pe-quarter.png?resize=640,290" alt="" srcset="https://media.dealstreetasia.com/uploads/2017/07/pe-quarter.png?w=820 820w, https://media.dealstreetasia.com/uploads/2017/07/pe-quarter.png?resize=300,136 300w, https://media.dealstreetasia.com/uploads/2017/07/pe-quarter.png?resize=768,347 768w" sizes="(max-width: 700px) 100vw, 700px" data-recalc-dims="1" /></a>
Buoyed by strong PE activity, total investments in the first six months of 2017 jumped to a record $11.34 billion, beating the previous record high of $10 billion in H2 of 2007. The 2017 data includes venture capital investments, but excludes private equity investments in real estate.
The largest investment reported during Q2 2017 was the $1.4 billion investment by SoftBank in One97 Communications, the parent company of mobile payments major Paytm.
The quarter ended June 2017 witnessed 10 PE investments worth $100 million, with Canadian pension fund <a style="color: #000080;" href="http://dealstreetasia.com/tag/cppib" target="_blank" rel="noopener noreferrer">CPPIB</a> and global private equity major <a style="color: #000080;" href="http://dealstreetasia.com/tag/warburg-pincus" target="_blank" rel="noopener noreferrer">Warburg Pincus</a> among active investors during the quarter.
<a href="https://media.dealstreetasia.com/uploads/2017/07/pe-april-june.png"><img loading="lazy" decoding="async" class="wp-image-76798 aligncenter" src="https://media.dealstreetasia.com/uploads/2017/07/pe-april-june.png?resize=640,351" alt="" srcset="https://media.dealstreetasia.com/uploads/2017/07/pe-april-june.png?w=857 857w, https://media.dealstreetasia.com/uploads/2017/07/pe-april-june.png?resize=300,165 300w, https://media.dealstreetasia.com/uploads/2017/07/pe-april-june.png?resize=768,421 768w, https://media.dealstreetasia.com/uploads/2017/07/pe-april-june.png?resize=620,340 620w" sizes="(max-width: 700px) 100vw, 700px" data-recalc-dims="1" /></a>
“The most heartening factor about the record investment figures of 2017 is that it has been spread across a wide range of sectors,” said Natarajan. “While last year’s favourites of financial services and infrastructure sectors continue to attract mega dollars, big ticket investments in new age companies like Paytm &#8211; along with facilitating healthy exits for early investors &#8211; have provided reassurance that the e-commerce story in India is far from over.”
Also Read:
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<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/india-pe-investments-grow-to-5-4b-in-jan-mar-2017-vc-hits-3-year-low-69432/" target="_blank" rel="noopener noreferrer">India: PE investments grow to $5.4b in Jan-Mar 2017, VC hits 3-year low</a>

Venture capital (VC) investments in India slid to 78 deals worth $275 million during the quarter ended June 2017, 25% lower than the same period in 2016.

India: VC investments drop to lowest in 3 yrs in Q2; PE funding up 62%

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India: VC investments drop to lowest in 3 yrs in Q2; PE funding up 62%

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