4 new unicorns push up venture capital inflows to a record $8 bn in 2018

With significant investments during the last quarter, venture capital (VC) fund inflows into the country sniffing at $ 8 billion in 2018, says an industry report.

As against this, the global VC investments stood at $ 254 billion in 2018, a massive jump from $ 174.6 billion in the previous year.

According to a KPMG report released Tuesday, the domestic VC market gained strength in the year gone-by, with a number of notable investments in the December quarter, which include Swiggy's billion dollar fund raising in December and the restaurant search and rating platform Zomato mopping up $ 360 million in October.

"Deal size grew considerably in the reporting year, which is a sign of the increasing maturation of the VC market here. Fintech continued to be a big bet throughout the year, apart from marketplace platforms and ride-hailing apps," the report said.

The downturn in the final quarter belies the fact the domestic venture capital ecosystem, although not seeing the highs experienced earlier the decade, is still going strong, especially relative to historical tallies. The year closed with $ 7.9 billion overall, the third-highest in the decade, the report added.

The report notes that the country saw four new unicorns emerge in the year, after none in the previous year. The new unicorns reflect the growing diversity of the startup ecosystem, with each unicorn representing a different industry--Byju's in edtech, Policy Bazaar in fintech, Swiggy in food delivery, and Oyo in hospitality.

"Heading into the first quarter of 2019, the VC inflows into these industries are expected to continue. There will also likely be an increase in the number of niche innovation areas such as digital platforms to facilitate used-car sales," says the report.

There is a lot of action in consumer solutions segment, in addition to industrials, automotive and healthcare areas. The outlook is very positive for 2019, concludes the report.