The Indian venture ecosystem saw well over $2 billion invested in the third quarter of the calendar year 2018, buoyed by a $1-billion raise by hotel booking company Oyo Rooms to finance its expansion in China, a KPMG Enterprise Venture Pulse Report said. Several $100-million-plus mega deals were witnessed in the quarter, including $225 million by Udaan, $120 million by CureFit and $100 million by BookMyShow, the report said.
VC investment in Asia dropped back to a more natural investment level during Q3 of 2018, with VC-backed companies having raised $17.6 billion across 391 deals. While Singapore accounted for the largest deal in Asia this quarter with a $2-billion raise by Grab, China continued to be a key driver for VC investment and market activity. Three $1-billion-plus mega deals helped keep VC investment in Asia strong this quarter in addition to multiple $400-million-plus deals. India’s mergers and acquisitions (M&A) market soared to a record annual high during the quarter, reaching above the $100-billion mark for the first time in history. “While some industry consolidation has helped spur the M&A activity, the tech market has played a large part in the rise,” the report indicated.
Nitish Poddar, partner and national leader – private equity, KPMG India. said mobile penetration driven by strong demographics is what will drive the growth in the industry.