According to KPMG, VC Investments in India Increased to $8 Billion in the Second Quarter

Due to the broad applicability of digital business models in the pandemic, venture capital investments in India surpassed the previous record high recorded in Q4 2019, pushed not only by VC investors but also by more traditional funds feeling a sense of FOMO.

According to professional services firm KPMG, a variety of companies are garnering VC investment in India, particularly those focused on direct-to-consumer solutions such as e-commerce, food delivery, hyperlocal grocery delivery, video sharing, and gaming.

Edtech companies attract investors a lot, just like Byjus, which raised 1.5 billion in funding this quarter. Food delivery was also a prominent topic in Q2 2021 because of Swiggy's $800 million fundraisings.

According to Nitish Poddar, Partner and National Leader for Private Equity at KPMG in India, many tech-enabled enterprises in India are obtaining financing through capital markets.

According to Anand Vermani, Partner and Co-Head of Corporate Finance at KPMG in India, the number of venture capital agreements in India has reached an all-time high, continuing the rally that began in the third quarter of 2020.

According to him, significant investments follow solutions based on financial services and delivery, which span firms that provide on-demand financial support, B2B e-commerce, D2C, meals & grocery, supply chain & logistics, and mobility.

"The entry of so-called traditional funds with significant ticket investments into this market offers a substantial vote of confidence and credibility to operating models of these new-age businesses."

On the other hand, global VC investment increased from 147.2 billion dollars in 8,557 deals in Q1 2021 to 157.1 billion dollars in 7,687 sales in Q2 2021.

In the second quarter of 2021, VC investment in Europe totaled 34 billion dollars over 1,848 projects, up from 23.9 billion dollars across 2,150 deals in the first quarter.

Despite a drop from 42.8 billion dollars across 2,066 deals in Q1 2021 to 38 billion dollars across 1,998 sales in Q2 2021, VC investment in the Asia Pacific area remained strong in H1 2021.

In Q2 2-21, corporate investment was quite substantial, accounting for 73.9 billion dollars. In the first half of the year, first-time financings totaled $20.1 billion, significantly ahead of the previous high.