Venture capital-backed funding in India was up around 80% sequentially to $1.05 billion during the July-September quarter of the current fiscal year, reports FE Bureau in New Delhi. According to the KPMG and CB Insights report, VC investment in calendar year Q3 of 2016 was spread across 108 deals against $584 million across 107 deals in the preceding quarter. Domestic companies had raised about $3.4 billion across 156 deals in July-September 2015. Investor interest in areas such as fintech, health tech, and other consumer technology companies increased and they moved to companies with a clear profit agenda, rather than customer acquisition story, where revenue models would evolve later, the report said.
In the e-commerce sector, Paytm’s parent company One97 Communications raised $60 million from Taiwanese chip maker MediaTek Inc in August which valued the company at $4.8 billion. Online furniture marketplace Pepperfry followed with $31 million Series E funding in September. However, the $70 million+ deals were bagged by TCNS Clothing, Big Tree Entertainment and Concord Biotech, during the quarter.
“The investment environment in India is becoming stable with clearer business models emerging in the start-up ecosystem. Though the speed of investments have not increased, we see a clear increased interest by investors in FinTech start-ups with O to O models which have better control in the ecosystem, as well as interest in the payments space,” said Sreedhar Prasad, partner, ecommerce and start-ups at KPMG in India.