Venture capital firms made 94 investments worth $ 324 million in Indian companies during three months to June 2016, a fall of 34 per cent in value terms over a year ago, says a report.
According to Venture Intelligence, the investment activity, measured in terms of number of deals, in the June quarter of this year was 16 per cent lower than the year-ago period, which saw 112 investments worth USD 491 million.
Venture capital (VC) investments during April-June this year were led by fashion e-tailer Voonik, which raised $20 million in second round led by the existing investor Sequoia Capital India, followed by the USD 16 million third round investment in playschool company KLAY Schools.
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Other start-ups that mobilised sizeable money in April-June included healthcare product e-tailer 1MG, which raised USD 15 million from Sequoia Capital India, Maverick Capital and Omidyar Network, and online tax filing company Cleartax, which attracted USD 12 million from SAIF Partners, following a USD 2 million round from Sequoia Capital India and US-based Founders Fund.
The report further noted that as VC type investments cap out at USD 20 million per round under Venture Intelligence definitions, follow-on investments raised by companies like NestAway and Helpshift were not included in this analysis.
Information technology and IT-enabled services companies, at 73 deals worth USD 223 million, attracted 78 per cent of VC investments, followed by healthcare & life sciences companies that received 6 investments worth USD 25 million.
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Bengaluru continued to be the top destination for VC investments in the June quarter, accounting for 36 per cent of the investments (by volume or number of deals), followed by NCR Region, which took 30 per cent. Mumbai-based companies came in third with a 23 per cent share, the report said.