Indian venture capital industry has invested $10 billion in 2019, registering 55 percent rise driven by increased deal volume and larger average deal sizes, according to a report by Bain & Company’s India Venture Capital Report 2020.
The report, in partnership with Indian Private Equity & Venture Capital Association (IVCA), said there has been 30 percent increase in deal volume and 20 percent rise in average deal size in 2019 over the previous year.
According to an EY report released earlier, private equity and venture capital investments in India country touched $48 billion in 2019. PE/VC investments in terms of value rose 28 percent, while the deal volume grew 35 percent. The growth was primarily driven by a significant increase in investments in infrastructure sector, which grew over three times compared to 2018,” EY report said.
Arpan Sheth, partner at Bain & Company, said about 80 percent of the VC investments in 2019 was concentrated in four sectors — consumer tech, software/ SaaS, fintech and B2B commerce and tech. Consumer tech continued to be the largest sector, accounting for approximately 35 percent of the total investments with several scale deals exceeding $150 million.
Between 2012 and 2019, the number of startups in India increased 17 percent each year, while funded startups increased at 19 percent CAGR. Currently, of almost 80,000 startups in India, about 8 percent are funded, indicating room for investments. India-focused VC funds raised about $2.1 billion in 2019, slightly lower than that in 2018.