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Fintech emerges as the most favoured sector among VCs in Q2 2018

Fintech Companies grabbed 26% of all Venture Capital (VC) funding in the quarter ended June 2018 - 24 deals worth $81 million - compared to 11% in the immediate previous quarter. (Health tech investments had grabbed the top spot in Q1 2018.) Investments in Fintech were led by large investments in trade finance and factoring company Drip Capital and SME loan marketplace CoinTribe. Lending startups (12 investments worth $47 million) accounted for 50% of the Fintech investments.


Overall, VC firms made 92 investments worth $392 million in Q2’18, data from Venture Intelligence  shows. Investment value increased by more than 20% compared to Q2’17 as well as the immediate previous quarter (which registered investments worth $315 million). In volume (no. of deals) terms, the figure was 12% lower compared to the 104 deals worth $318 million recorded in Q2'17 and flat compared the immediate previous quarter (which registered 95 deals). Note: Venture Capital is defined by Venture Intelligence as Seed to Series D round investments in companies less than 10 years old with value of up to $20 Million.

Healthcare analytics startup SigTuple raised a $19 million Series B led by Accel India and IDG Ventures India. Tea chain Chai Point raised a $17.5 million Series C round led by Paragon Partners. B2B E-commerce company Bizongo raised $17 million as part of its Series B round, led by Eduardo Saverin’s B Capital Group and IFC.


By Sector

Tech companies attracted 80 investments (87% of the activity) worth $299 million during Q2’18. Of the 12 VC investments (worth $85 million) that went into non-tech companies, the largest were ChaiPoint (Tea Chain), X1 (Motor) Racing League, IndiQube (Co-working space) and WonderChef Home Appliances

Consumer focused companies grabbed 60% of the VC funding - 55 investments (worth $224 million) - in Q2’18, compared to B2B companies which attracted 37 investments (worth $168 million). Apart from the above companies, top investments in consumer companies include Meesho (Social Selling) and RailYatri (Content - Rail Travel).



E-Commerce grabbed 14 investments (worth $79 million), followed closely by Healthtech with 13 deals worth $26 million. 

Investments by City


VC Investments in Bangalore-based companies fell fell by 17% . Mumbai startups bounced back to equal with NCR attracting 23 investments. Coimbatore sneaked in at fourth place with two VC investments, after Chennai (5). Investments in other cities fell by 76%.


Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

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