VC investments decline 34% to $324 million in April-June 2016: Report

Venture capital (VC) firms made 94 investments worth $324 million in Indian companies during three months to June 2016, a fall of 34% in value terms over a year ago, says a report.

According to Venture Intelligence, the investment activity, measured in terms of number of deals, in the June quarter of this year was 16% lower than the year-ago period, which saw 112 investments worth $491 million.

VC investments during April-June this year were led by fashion e-tailer Voonik, which raised $20 million in second round led by the existing investor Sequoia Capital India, followed by the $16 million third round investment in playschool company KLAY Schools.

Other start-ups that mobilised sizeable money in April-June included healthcare product e-tailer 1MG, which raised $15 million from Sequoia Capital India, Maverick Capital and Omidyar Network, and online tax filing company Cleartax, which attracted $12 million from SAIF Partners, following a $2 million round from Sequoia Capital India and US-based Founders Fund.

The report further noted that as VC type investments cap out at $20 million per round under Venture Intelligence definitions, follow-on investments raised by companies like NestAway and Helpshift were not included in this analysis.

Information technology and IT-enabled services companies, at 73 deals worth $223 million, attracted 78% of VC investments, followed by healthcare & life sciences companies that received 6 investments worth $25 million.

Bengaluru continued to be the top destination for VC investments in the June quarter, accounting for 36% of the investments (by volume or number of deals), followed by NCR Region, which took 30%. Mumbai-based companies came in third with a 23% share, the report said.