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Venture capital (VC) investments have declined by nearly 30 per cent during the half year ended June 2012.
VC firms invested $363 million across 100 deals during the six months.
While the volume of investments has kept pace, the value declined as compared to the same period last year, which had witnessed 103 deals worth $520 million, says a report by Venture Intelligence, a Chennai-based research service focused on private equity, VC and M&A transaction activity in India.
Significantly Lower
During the quarter ended June 2012, VC firms invested $186 million over 55 deals.
This was significantly lower when compared to the same quarter in 2011, which had witnessed $281 million being invested across 59 deals but higher when compared to the immediate previous quarter ($177 million across 45 deals), the analysis showed.
Top growth investments during the quarter included the $20-million investment led by Everstone (with participation from existing investor Helion Ventures) into salon chain firm YLG Salon & Spa and the $16.2 million invested by Peepul Capital into medical devices firm Cura Healthcare. Among early stage deals, Russian VC firm ru-Net Holdings invested $9 million in Sequoia Capital-backed online apparel brand Freecultr and $8 million in online shoe retailer BeStylish.
Fidelity Growth Partners India led a $6.3-million round for MineralTree, an US-based secure payments provider for SMEs, the report said.
IT & ITeS companies attracted 33 deals worth $86.4 million, which made up 60 per cent of the investments in volume terms and 47 per cent in value.
Online services
Online services attracted 21 investments worth about $61 million accounted for 64 per cent of the IT & ITeS pie by volume and 70 per cent by value.
Apart from FreeCultr and BeStylish, other Online Services firms that raised funds during the second quarter included online taxi aggregator Olacabs ($4-M from Tiger Global), ethnic wear e-tailer Cbazaar.com ($3.5 million from Ojas Ventures and Inventus Capital), and US-based social media benchmarking firm Unmetric ($3 million from Nexus Ventures), the Venture Intelligence analysis showed.
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