Venture capital flows to India slightly down at $158 million in April-June

15 July 2008

Mumbai: Venture capital firms invested $340 million in 51 deals in India during the first six months of the current year (January-June 2008), down 6 per cent from $363 million and 55 deals during the same period last year, according to a study released by a research firm.

However, amidst a financial market turmoil in the West, more private equity funds also found its way into the Indian market, the report said.

PE firms invested about $2.8 billion in 77 Indian companies during the quarter ended June 2008, higher than the 74 deals for a total of $1.9 billion in the same quarter last year, but lower compared to 115 deals totalling $3.6 billion in the previous quarter of the current year. This takes the total investments in the first six months of 2008 to over $6.3 billion.

VC firms invested $158 million over 26 deals in April-June 2008 against $163 million in the second quarter of the previous year in 25 deals, a joint study by Venture Intelligence and the US-India Venture Capital Association said.

The latest numbers take the total investments in the first six months of 2008 to over $6.3 billion as against the $5.4 billion invested during the corresponding period in 2007.

''VC investment activity as well as amounts invested during the first half of 2008 has not been affected much by the turmoil in the global financial markets,'' Venture Intelligence CEO Arun Natarajan said.