Venture capital funding in India strikes $3.1 billion mark in fourth quarter: KPMG

With 294 deals, venture capital investment in India reached $3.1 billion in the fourth quarter last year compared to $3.6 billion in the last quarter, says a KPMG report. While the deal volume rose to its highest level since Q1 of 2018, investments of VC dropped somewhat during the fourth quarter of 2020, according to the report for Q4 2020.

During Q4, home delivery, marketplace platforms and e-commerce were the hottest areas of investment attracting the majority of India's funding rounds of $100 million or more including a $200 million raise by marketplace platform Cars24 and a $660 million raise by food delivery company Zomato.

Despite global uncertainty resulting from a number of ongoing events including the Covid-19 pandemic, global VC investment remained very robust in Q4 with $80.8 billion coming in the form of investments from as many as 5,418 deals.

This strong performance helped drive annual global VC investment to $300.5 billion in 2020, up from $281.6 billion in 2019 and second only to 2018's record $329.7 billion despite a drop in deal volume, said the report.