Indian startups saw 40 Series A deals worth $156 million during the period, much lower than the 66 deals worth $421 million concluded between December and March
NEW DELHI : Venture capital investments in startups fell between April and July due to disruptions caused by the pandemic besides curbs on Chinese investments in India although the pace of investments is reviving with contributions from other geographies, said experts. Indian startups saw 40 Series A deals worth $156 million during the period, much lower than the 66 deals worth $421 million concluded between December and March, showed data from Venture Intelligence,
A total of 33 Series B deals worth $320 million were closed in April-July, compared to 42 deals worth $485 million in December to March. Series C investments were almost flat at 22, up from 20 during the periods under consideration, but deal values dropped from $362 million to $338 million in the April to July period. “The investor velocity was going down even before covid-19. At the end of December and January, the macro-economic condition in India and elsewhere was not the best. There was sharp focus around how companies were looking at profitability. Grow-at-cost model was under stress. People were talking about more sustainable models and building businesses more focused on building long-term value," said Ankur Pahwa, partner and national leader, ecommerce and consumer internet sector, EY India. To be sure, segments such as ed-tech saw a rise in investments following the lockdown, as schools and colleges were closed, forcing people to go online. Ed-techs saw investments worth $769 million in the first half of 2020, a sharp rise from $110 million a year earlier.
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