NEW DELHI: India has seen an inflow of $3.6 billion in investment from venture capitalists (VCs) in the September quarter driven mainly by the Flipkart and Jio deals, according to KPMG.
In the June quarter, which was marked by very strict nationwide lockdown, VC fund inflows stood at $1.5 billion, KPMG said in a report. Of the total $3.6 billion, as much as $1.3 billion came into Flipkart from Walmart, which had bought out the former for $17 billion in August 2017.
In July, Google had also announced a $10 billion fund to help accelerate the country’s transition to a digital economy. According to Nitish Poddar, a partner at KPMG India, the clear standout sector for VC investment here has been edtech.
While this has been true for the past couple of quarters as well, the ongoing quarters will also see funds inflowing in with the recent announcements of some big ticket deals, the report pointed out. In the edtech sector, four of the largest deals are fundraise by BYJU ($500m), Unacademy ($150m), Eruditus Executive Education ($113m), and Vedantu ($100 million).
On an annualized basis, however, the inflow has been tepid with only around $500 million of additional inflows into India. Globally, VC investment rose to touch $73.2 billion in the September quarter.