New Delhi, Oct 29: India bucked the global downward trend in VC investments in the third quarter of 2024 with significant fundraising by consumer-focused companies, according to a report on Tuesday.
According to KPMG Private Enterprise’s Venture Pulse report, venture capital investment in India remained strong at $3.6 billion in the quarter, helped by heavy fundraising by consumer-focused companies. That’s what it means.
Significant financing by business-to-consumer (B2C) companies in India is an incredibly unique trend, contrary to trends seen in most other jurisdictions in Asia and other parts of the world. , business-to-business (B2B) companies are on the rise. Attracted the highest level of VC investment.
According to the report, fintech businesses continue to attract significant attention in India, while traditional banks are developing their own fintech businesses targeting the large unbanked and unbanked population. Venture capital investors in the space have become more cautious in recent quarters as more tech products are introduced, he said. population.
The report states that the VC market is recovering and there is very strong optimism that VC investment levels may actually start to rise in the coming quarters.
“As expected, we have seen a recovery in activity, particularly in the consumer-centric consumption sector. This trend is expected to continue, with investors focusing on two key themes: Returns from high levels of customer engagement. This will favor businesses that are aligned with gender and strong growth trajectories,” explained Nitish Poddar, Partner and National Leader, Private Equity, KPMG. In India.
“This, coupled with strong capital markets, is driving renewed interest from VCs,” he added.
AI investments accounted for the majority of global VC investment activity in Q3.
In addition to defense technology, AI will also continue to be a hot investment area, given continued global geopolitical tensions. According to the report, there is increasing optimism that exit activity is poised for a recovery, which will be highly beneficial for the global VC market heading into 2025.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor
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