India In Sweet Spot For VC Inflows

New Delhi: India bucked the global trend of decline in VC investment during the third quarter of 2024, with significant raises by consumer-focused businesses, according to a report on Tuesday. VC investment in India remained solid at $3.6 billion in the quarter, helped by a number of raises by consumer-focused businesses, according to the KPMG Private Enterprise’s Venture Pulse report.

The large raises by business-to-consumer (B2C) businesses in India was an incredibly unique trend, the opposite of trends seen in most other jurisdictions in Asia and in other regions of the world- where business-to-business (B2B) companies attracted the greatest levels of VC investment.

According to the report, while fintech businesses continued to attract a lot of attention in India, VC investors in the space have become more cautious in recent quarters as traditional banks have increasingly introduced their own fintech products aimed at the large unbanked and underbanked segments of the population.

There is very strong optimism that the VC market is recovering and that the next few quarters could see the level of VC investment really start to climb, the report mentioned.