The country had an investment of $ 1.5 billion in the April-June 2020 quarter, a global VC investment of $ 73.2 billion.
With the increase in economic activity in unlocking, venture capital (VC) investment in the country has also been fierce. According to the latest KPMG report, in the third quarter of calendar year 2020, the country has invested $ 3.6 billion and about 26 thousand crore rupees. This is almost double the second quarter of 2020. In the April-June 2020 quarter, about $ 1.5 billion was invested by 11 thousand crores.
Edtech sector gets strong investment
KPMG’s report titled Venture Pulse said that India’s EdTech companies received a strong investment in the third quarter. According to the report, Byzus received $ 500 million in this quarter, Unacademy $ 150 million, Iruditus Executive Education $ 113 million and Vedantu $ 100 million VC investment.
The number of deals increased compared to the third quarter
KPMG partner Nitish Poddar said in a statement that the number of VC VC deals has increased in the third quarter and is still ongoing. He said that this is a very diverse field and now it is going beyond the traditional K-12 model. He said that now companies are increasing the digital focus on competitive exams like engineering and medical. In addition, programs are being run to teach coding to children. It is a very hot area for investment and will remain so for a few days.
Bounce in VC investment globally
According to the report, VC investment has also grown globally in the third quarter. Globally, $ 70 billion was invested in the second quarter of 2020 through 5674 deals. Whereas in the third quarter, investment of $ 73.2 billion came from 4861 deals. The report notes that VC investment exit activities have also increased during this period. VC investment of $ 156 billion exited in the third quarter. It was just $ 49.2 billion in the previous quarter.
Pharma and biotech again become a hot area
The report states that pharma and biotech have once again emerged as hot areas for VC investment. VC investment is expected to diversify in the fourth quarter. The report predicts late-stage deals to be a priority for VC investors. This can make it difficult for early-stage companies to attract investment. The report said that the FinTech, Business Productivity, EdTech, HealthTech and Biotech sectors will remain attractive in terms of VC investment.