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VCs make 100 investments worth $363-M in first half of 2012

Volume of investments keeps pace with 2011; Deal Value comes down

Venture Capital firms invested $363 million across 100 deals in India during the six months ending June 2012, according to a study by Venture Intelligence (http://www.ventureintelligence.in), a research service focused on Private Equity, Venture Capital and M&A transaction activity in India. While the volume of investments has kept pace, the value of the investments has come down as compared to the same period last year (which had witnessed 103 deals worth $520 million).

In the latest quarter ending June 2012, VC firms invested $186 million over 55 deals - which was significantly lower 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 Venture Intelligence 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.

Information Technology and IT-Enabled Services (IT & ITES) companies, at 33 deals worth about $86.4 million, attracted 60% of the investments in volume terms (versus 53% in Q2’11) and 47% in value terms (the same as in the year ago period). Online Services, which attracted 21 investments worth about $61 million during Q2’12, accounted for 64% of the IT & ITES pie by volume and 70% by value. Apart from FreeCultr and BeStylish, other Online Services firms that raised funding during Q2’12 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). Early Stage investments accounted for 78% of the investments (in volume terms) during Q2’12, the Venture Intelligence analysis showed.

About Venture Intelligence

Venture Intelligence is the leading provider of data and analysis on private equity, venture capital and M&A deals in India. View free samples of Venture Intelligence newsletters and reports.

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