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Indian VC industry sees US$10 bn investment in 2019

Bain & Company’s India Venture Capital Report 2020 revealed that Indian VC industry is riding high as it invested US $10 billion (over ₹72,000 crore) in 2019. This report, which has been published in collaboration with Indian Private Equity & Venture Capital Association (IVCA) stated that the investment is driven by an increase in deal volume (30%) & larger average deal sizes (20%). This was 55% higher than the money invested by the industry in 2018.

“Despite substantial capital deployment, dry powder availability for VC investing in India was at an all-time high of USD 7 billion at the end of 2019, indicating likely continued investment activity in 2020,” the report stated. (Dry power here implies the cash reserves kept on hand by a company, venture capital firm or individual to cover future obligations.)

Consumer tech, software/ SaaS, fintech and B2B commerce and tech were the primary beneficiaries of this investment. The report also highlighted that the Indian startup ecosystem, one of the top five globally, continued to remain healthy and grow rapidly.