VCs invest $928 mn in India in 2007
Date: Friday , February 29, 2008
India’s reputation for making invincible strides in the IT sector is increasingly making the country a hotspot for venture capitalists (VC). A whopping $928 million worth VC investments via 80 deals in entrepreneurial companies happened in India during 2007 testify this.
If the Quarterly India Venture Capital Report published by Dow Jones VentureSource is anything to go by, last year has witnessed a 166 percent increase in VC investments in the country over the previous year’s $349 million in 36 deals.
Nearly 48 percent of all venture finance deals went to the IT companies, as 38 rounds were completed, accounting for $384 million. It is noteworthy that this IT specific investment alone was more than the entire VC funding in the country in the previous year.
In the IT sector, one could see players in the web-heavy information service bagging $141 million in investments through 22 deals in this ‘mega venture’ show. Out of this, $10 million in second round funding flowed in to Bangalore based Four Interactive, an online provider of local information on food, events, lifestyle, and shopping.
Among other areas, business, consumer, and retail industry saw an overall investment of over $346 million through 30 deals, a 92 percent increase when compared to the previous year.
The country’s healthcare industry was not an exception. Doubling the figures of 2006, the industry witnessed nearly $100 million investments through seven completed deals.
Jessica Canning, Director of Global Research for Dow Jones VentureSource gives a seemingly comprehensive view on the issue when he says, “Service oriented companies in India, both in the technology and the non-technology areas, continue to attract investment and this is likely due to their low capital requirements as well as the rapidly emerging nature of the broader Indian economy.”