Indian Startups In Tech Get Biggest Boost Yet From VC Investors
Want any more proof of how hot venture investing is today in India? Consider that VC investments have hit a record high this year, with transactions totaling $1.44 billion in 323 deals during the first nine months, surpassing last year’s full year totals of $1.17 billion in 304 deals. Moreover, investments for the third quarter of 2015 are up by 41% over same period last year.
Nearly three-quarters of the deals this year have focused on IT and IT-enabled services, largely Internet and mobile firms, with the payments sector attracting a steady stream of capital.
This week, Citrus Payment Solutions took in a $25 million in a Series C round, including participation from existing investor Sequoia Capital and new investor Ascent Capital. The round values the company at roughly $90-$100 million.
Several notable deals in mobile sectors have been made by major investors during recent months that have contributed significantly to the pool of venture deals in India this year. Recent deals include a $680 million investment by Alibaba Group and Ant Financial in One97 Communications’ Paytm, a $25 million Series B investment by Cisco Investments and Sequoia in mobile wallet company MobiKwif, and Tiger Global’s $20 million outlay in mobile-based news service News in Shorts. Additionally, India’s Jasper Infotech acquired mobile and digital services recharge company Freecharge for about $400 million.
The healthcare sector is seeing action too. Sequoia Capital India invested $20 million in genomics diagnostics firm MedGenome, and $19 million in Akumentis Healthcare, a fast-growing women’s pharmaceutical products manufacturer.
Venture fund raising is seeing a boost as well. WestBridge Capital, an India-focused VC and PE firm, has recently raised $575 million, bringing its capital to $1 billion to back Indian companies. One of the more active venture and private equity investors in India, WestBridge has invested $1.2 billion in more than 60 Indian companies.
Notably too, Singapore’s Temasek acquired SVB India Finance in a deal that could see India’s startups getting a further boost in the debt financing that SVB specializes in and move Temasek into this finance sector in Asia.