Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul><li>VC investments in India softened in the first quarter of 2023 but expected to pick up in the latter half of 2023 says a KPMG report. </li><li>This quarter, VC investors were inclined to make smaller investments in startups with more reliable valuations. </li><li>In Q1 2023, VC investment in Asia declined significantly, dropping from $25.5 billion in Q4 2022 to just $13.5 billion.</li></ul>VC investment in India has softened in the January-March quarter of 2023 as investors were picky and scrutinized potential deals more intensely, says a Venture Pulse report by KPMG. VC investments went down to $2.1 billion in the quarter, down by 77% as compared to the same quarter last year when VCs poured in $9.1 billion into the market. “Despite the current slowdown in VC funding, macro factors in India remained relatively strong compared to other jurisdictions, which is driving optimism that the country will see a bounce back in VC investment in the later half of 2023,” said the report. The FOMO effect VC investments in Q1 of 2023 hit a 11-quarter low, as VC investments were at $2.1 billion last in the second quarter of 2020 – right when the lockdowns had started. Soon after however came a boom time. KPMG says that Fear of Missing Out or FOMO drove a lot of VC investment in India in 2021 and early 2022. However, without the FOMO effect is now gone and VCs enhanced their focus on startup performance and profitability. “The biggest change in India is that the euphoria for deals has died down. The FOMO has gone. The big ticket deals have also dried up, which has had an outsized impact on our total investment numbers,” says Nitish Poddar, partner and national leader, PE KPMG in India. Fintech was still a major area of investment, with large deals such as PhonePe, NoBroker, KreditBee, and Insurance Dekho. Agtech and gaming also saw increased interest. However, edtech interest declined in Q1 2023 after a period of high enthusiasm. “But despite the visible decline, it’s important to know that a lot is still happening in India. The macros here are still very good. We’re still seeing a lot of funding in pre-series A deals. And we’re still seeing a lot of new micro funds being raised in the country — funds under $100 million with check sizes from $1–5 million,” says Poddar. VC investments in Asia decline, Down rounds go up In Q1 2023, VC investment in Asia declined significantly, dropping from $25.5 billion in Q4 2022 to just $13.5 billion. This was the lowest quarter for VC investment in the region since Q2 2015, with several factors contributing to the decline. In China, a surge in Covid-19 cases impacted VC activity prior to the New Year holidays. Hong Kong was affected by rising interest rates and a slowdown in IPO activity, while India experienced investors becoming more selective with their investments. Japan was the only country in the region to see an increase in investment during Q1 2023, but the total was still far lower than Q1 2022. The data also shows that down rounds (when the pre-money valuation of a fundraising round is lower than the post-money valuation of the round previous) has gone up significantly in 2023 as compared to the last year, the report reveals. In Q1 2023, the global VC investment trend showed a decline in each quarter following its peak of over $200 billion in Q1 2022. By Q1 2023, the total VC investment worldwide had dropped significantly, falling well below $60 billion. The uncertain global market, which is impacted by factors such as rising interest rates, domestic and geopolitical challenges, economic concerns, and the war in Ukraine, meant that no region was immune to the changing market conditions. This resulted in investors becoming increasingly cautious and risk-averse, leading to a reduction in VC investment activity.

FOMO out, scrutiny in: VC investments fall 77% in Q1 2023 says KPMG

New Delhi, With 294 deals, venture capital <keyword id="6355120" type="UNKNOWN" weightage="20" keywordseo="investment">investment</keyword> in India reached $3.1 billion in the <keyword id="111300" type="PERSON" weightage="20" keywordseo="fourth-quarter">fourth quarter</keyword> of 2020, compared to $3.6 billion in the previous quarter, said a <keyword id="2496484" type="PERSON" weightage="20" keywordseo="KPMG-report">KPMG report</keyword>. While <keyword id="4522808" type="PERSON" weightage="20" keywordseo="VC-investment">VC investment</keyword> dropped somewhat during the fourth quarter of 2020, India saw the deal volume rise to its highest level since Q1 of 2018, according to the <keyword id="50041" type="COMPANY" weightage="20" keywordseo="KPMG">KPMG</keyword> Private Enterprise Venture Pulse report for Q4 2020. During Q4, home delivery, marketplace platforms, and e-commerce were the hottest areas of investment, attracting the majority of India's funding rounds of $100 million or more, including a $200 million raise by marketplace platform Cars24 and a $660 million raise by food delivery company Zomato. "There have been a number of sectors that have really benefited from the pandemic here in India. Interest in staples delivery - fresh food, groceries, and the likes - has grown quite significantly in recent months, in addition to online retail and gaming. That has driven a lot of investment," Nitish Poddar, Partner and National Leader -- Private Equity, KPMG in India, said in a statement. "Then there's edtech. It's been an attractive area for VC investors for a couple of years now -- but in 2020, that interest skyrocketed and so did the investments," he added. Despite global uncertainty resulting from a number of ongoing events, including the Covid-19 pandemic, global VC investment remained very robust in Q4, with $80.8 billion in investments across 5,418 deals. This strong performance helped drive annual global VC investment to $300.5 billion in 2020 -- up from $281.6 billion in 2019 and second only to 2018's record $329.7 billion despite a drop in deal volume, said the report. SEE ALSO; <a href="https://www.businessinsider.in/policy/economy/news/recession-in-india-will-end-latest-by-march-says-a-top-economist/articleshow/80399198.cms">Recession in India will end latest by March, says a top economist</a> <a href="https://www.businessinsider.in/tech/news/amazfit-smartwatch-gts-2-review-feature-rich-but-theres-still-room-for-improvement/articleshow/80398998.cms">Amazfit GTS 2 review – feature-rich, but there’s still room for improvement</a> <a href="https://www.businessinsider.in/tech/apps/news/whatsapp-to-soon-introduce-voice-and-video-calls-for-web-multi-device-support-jiomart-integration-and-more/articleshow/80398791.cms">WhatsApp to soon introduce voice and video calls for Web, multi-device support, JioMart integration and more</a>

Venture Capital funding in India hits $3.1 billion in Q4 of 2020, says KPMG report

Mumbai, Apr 27 () After record USD 6 billion inflows into the country in the December 2019 quarter, VC investments plunged to a meagre USD 2.2 billion in the March 2020 quarter due to the coronavirus-driven uncertainties, according to a report. However, despite these challenges, the domestic market saw a number of large deals during the period under review, according to the report by KPMG. Though initially India was not as affected by the COVID-19 pandemic as China in the reporting quarter, concerns grew later because India receives a significant amount of venture capital (VC) from international firms and corporates. As a result, many deals got deferred as these investors wait to see how the pandemic affects their businesses. "While the pipeline for deals is expected to remain relatively robust, deal flow is expected to become very slow, particularly in Q2 (second quarter). Though VC investments may be challenging in the short term, it is expected to remain robust over the longer term," Nitish Poddar of KPMG India said in the report. Education technology (edutech) is expected to remain a very hot sector for venture capitalists, in addition to auto-tech, and health-tech related to fitness. Gaming can also see an uptick in interest, said the report and underlining the USD 400 million fund raising by Byju's in the quarter, USD 110 million by Unacademy, and Aakash Educational announcing its acquisition of Meritnation during the quarter. Then there was the mobility firm Bounce raising USD 150 million, the report noted. "With the lingering COVID-19-spawn uncertainty, (venture capitalists) are expected to become even more risk averse now and will take time to re-evaluate their portfolios given the current situation. However, with the pandemic basically slamming the IPO (initial public offering) market door shut at least for the short term, some companies may require bridge funding to get through the market turbulence where comes the role of the VCs," Poddar said in the report. The report also noted that given the travel and movement restrictions, cross-border VC investment will be very challenging heading into the second quarter. The inability to conduct in-person due diligence and face-to-face meetings will likely curtail a significant amount of cross-border activity, with some VC investors choosing to stick closer to home. BEN HRS

You Searched For "nitish poddar" and got 3 results

FOMO out, scrutiny in: VC investments fall 77% in Q1 2023 says KPMG

Anagh Pal

Venture Capital funding in India hits $3.1 billion in Q4 of 2020, says KPMG report

IANS

VC inflows tumble to just USD 2.2 bn in Mar quarter

PTI

Popular Keywords

Buying Guides