Venture capital (VC) investment in India soared from $1.6 billion across 313 deals in Q4 2023 to $3.2 billion across 354 deals in Q1 2024, according to KPMG.
Despite the modest deal activity across Asia, India experienced a notable increase in VC investments, with particular attention drawn to the fintech sector, albeit at smaller deal values, according to the report titled KPMG Private Enterprise Venture Pulse.
“India has seen an uptick in VC investments despite the deal activity being muted in Asia. This will only increase in the coming quarters given our robust GDP growth, strong demographics, and expectation of a stable government at the Centre,” Nitish Poddar, Partner and National Leader of Private Equity at KPMG in India, said.
AI, power tech, health tech, and agri tech are key sectors to watch out for in the future, the report said.
Global VC investment experienced a decline, dropping from $83.8 billion across 9,458 deals in Q4 2023 to $75.9 billion across 7,520 deals in Q1 2024. This decrease was attributed to geopolitical tensions, a prolonged drought in exits among VC-backed companies, and a continued pullback in investment at later deal stages.
The report noted a decrease in VC investment in both the Americas and Asia during the quarter, while Europe saw an increase. The Americas accounted for nearly half of the global VC funding in Q1, with the United States contributing the majority of this amount. Asia-Pacific attracted significant investment, while Europe also witnessed substantial VC funding.
