Venture capital investment in India has slowed down to $1.9 billion in the third quarter of 2023 as investors continued to shy away from making large deals.
The deal value was $3.3 billion in the third quarter of 2022 and $14.8 billion in the third quarter of 2021.
Juniper Green Energy raised the largest deal of the quarter ($350 million) followed by grocery firm Zepto which raised $200 million, electric scooter companies Ola ($140 million) and Ather Energy ($108 million via rights issue as opposed to equity). Fish and seafood supply chain platform Captain Fresh also raised $71 million during the quarter, according to KPMG’s Venture Pulse report.
“VCs have been quiet with new investments and were looking at portfolio consolidation in the past few quarters. However, we are seeing green shoots of deal activity and expect a strong increase in the next three-four quarters,” said Nitish Poddar, partner and national leader, private equity, KPMG in India.
He said the path to profitability and positive cash flow will be the key performance indicators for the investors.
The trend in India is in line with the global trend where global VC investments fell for the seventh straight quarter to $77.05 billion in Q3 2023.
