“According to Venture Pulse – a quarterly report published by KPMG Private Enterprise, the venture capital (VC) investments was robust world over, despite the pandemic-led disruptions during July-September quarter.
The VC investments In India, grew to US$ 3.6 billion in July-September from US$ 1.5 billion in the June quarter, supported by mega deals including the US$ 1.3 billion raised by online retailer Flipkart.
Mr. Amarjeet Singh, partner, KPMG in India quoted that India continues to be attractive market for VC investors and there is huge demand in the edtech, healthtech and fintech segments.
To accelerate India’s transition to a digital economy, Google had announced a US$ 10 billion fund in July 2020.
Jio Platforms received major investment from Google (US$4.5 billion) and Facebook’s (US$5.7 billion), and it have also made its own investments in Q3, including the acquisition of online pharmacy Netmeds in August.
India’s edtech sector has undertaken four of the largest deals during the quarter. It includes Byju’s (US$ 500 million), Unacademy (US$ 150 million), Eruditus Executive Education (US$ 113million), and Vedantu (US$ 100 million).
Mr. Nitish Poddar, partner and national leader – private equity, KPMG in India stated that edtech has been the hot area for investment and will likely remain so for some time,”” said
The report also states that the investment in Indian start-ups is likely to pick up substantially by end of the year.
At global level, around 4,861 VC deals worth US$ 73.2 billion took place during July–September 2020, higher than $70 billion across 5,674 deals in the June ended quarter.
The major sector likely to attract the investment in coming period are fintech, edtech, healthtech, and biotech.”