VC investments in India more than doubled to $3.6b in September quarter, says KPMG

VC word cloud. Credit:Barrie Entrepreneur Connect

Venture capital (VC) investments during the July-September quarter was robust world over, despite the pandemic-led disruptions, according to Venture Pulse — a quarterly report published by KPMG Private Enterprise.

In India, VC investments grew to $3.6 billion in July-September from $1.5 billion in the June quarter, powered by mega deals that included the $1.3 billion raised by online retailer Flipkart.

“India continues to be attractive market for VC investors. With the impact of the pandemic and the new normal paving the way for disruption in business models, there is significant demand in the edtech, healthtech and fintech segments,” said Amarjeet Singh, partner, KPMG in India.

Large tech investors focussed on India during the quarter under review.

In July, Google had announced a $10 billion fund to help accelerate India’s transition to a digital economy. The search engine giant is also making a $4.5 billion investment in Jio Platforms, following on Facebook’s $5.7 billion investment in the same company. Jio Platforms also made its own investments in Q3, including the acquisition of online pharmacy Netmeds in August.

With learning going remote, it was boom time for India’s edtech sector, with four of the largest deals undertaken during the quarter gone by. These deals were – Byju’s ($500m), Unacademy ($150m), Eruditus Executive Education ($113m), and Vedantu ($100 million).

“The clear standout sector for VC investment in India has been edtech. This has been true for the past couple of quarters, but this quarter the list of deals just goes on and on…It’s a very hot area for investment and will likely remain so for some time,” said Nitish Poddar, partner and national leader – private equity, KPMG in India.

According to the report, investment in Indian startups is expected to pick up substantially again by the end of the year.

Globally, about 4,861 VC deals worth $73.2 billion took place during July-Sepetmber, higher then $70 billion across 5,674 deals in the June ended quarter.

Late stage deals are expected to remain a top priority for VC investors, which will likely continue to make it difficult for early stage companies to attract investment.

Sector-wise, fintech, edtech, healthtech, and biotech will likely attract the bulk of investments.

IPO activity also picked up during the September quarter, with China-based Ant Financial filing IPO documents for listing on the HKSE in addition to AirBnb and Wish in the US.

The article was first published on livemint.com

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.