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VC firms invest $77 Million in India in Q3'09
By siliconindia
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360 crore) in July-September (third quarter) this year. The VC funding is also poised to grow in the coming months, as per a report.
According to the data compiled by research firm Venture Intelligence in association with Global-India Venture Capital Association (GIVCA), it is reported that VC firms invested $77 million over 17 deals in India during the third quarter of 2009. During the April-June quarter, VC funds had invested $64 million across 17 deals. The latest numbers take the total VC investments in the first nine months of 2009 to $201 million (across 46 deals) as against the $709 million (across 124 deals) during the corresponding period in 2008.
Among the largest reported investments during Q3 2009 was the Lightspeed Venture Partners-led investment of 500 million (about $10 million) in Mumbai-based Itz Cash Card, India's largest multi-purpose pre-paid card company. Existing investors Matrix Partners India and Intel Capital participated. Information Technology (IT) and IT-Enabled Services (ITES) companies accounted for 41 percent of the investments during Q3 '09 (42 percent by value). Also, the research firm reported that early-stage deals (First/Second Round of VC investments into companies that are less than five years old) accounted for 60 percent of the VC investments (in volume terms) during Q3 '09.
"Liquidity position of the limited partners is improving and by December quarter we will see funding returning to 2006 levels, wherein investments were at a more sustainable level," Venture Intelligence Chief Executive Arun Natarajan said. Although no new funding is expected, existing investors would shore up investments and by next year the total deals would be valued at about $200 million across 15-20 deals, he added.
"The return of confidence in emerging markets in general and India in particular is now getting reflected in the quarter-on-quarter numbers. Going forward, we expect the investing momentum to pick up even further," said GIVCA Director Sudhir Sethi.