BENGALURU: For the third straight quarter, venture capital investments in Asia dropped in Q3 of 2022, and in India it was relatively quiet due to growing economic challenges, said KPMG’s Venture Pulse Q3, 2022. The largest deals of the quarter included $210 million raised by edtech upGrad, $165 million raised by Lenskart, and $130 million raised by neo-bank platform Niyo.
Fintech was one of the most attractive sectors of investment in India this quarter, it said. “VC investment in India softened this quarter across most industry verticals. Fintech investment however, continued to buck this trend, garnering significant investor attention, as evidenced by a number of big deals, including mega-rounds to Niyo and InsuranceDekho,” said Nitish Poddar, Partner and National Leader, Private Equity, KPMG in India.
This quarter’s Global Fintech Fest 2022 also placed a spotlight on the Fintech ecosystem in India, believed to be one of the fastest growing fintech markets in the world, he added. Globally, in Q3 2022 VC-backed companies raised $87 billion across 7,817 deals.
Another report too said that there has been a decline in deal volumes and values in the third quarter.
According to Grant Thornton Bharat’s Dealtracker September 2022 report, the third quarter recorded only 450 deals worth $10.2 billion, the second-lowest quarterly values seen in the last five years. Q3, 2022, recorded three deals valued over $1 billion, 10 deals valued between $100 and $999 million, and 15 deals valued between $5 and $99 million.
Shanthi Vijetha, Partner- Growth at Grant Thornton Bharat, said, “Two black swan events – pandemic and the Russia-Ukraine geopolitical conflict have sparked inflationary conditions and significantly weighed on growth. Even as the outlook for global growth remains clouded by uncertainties, domestic growth is expected to hold up in the coming months.”