Venture capital investment in India has reduced to $216 million: KPMG

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A KPMG International report revealed that venture capital investment in India has seen a fall in 2016.

The funding in 2016 was only USD 216 million, as opposed to USD 1.6 billion in 2015. Considering that the actual deal volumes have remained steady throughout, the fall in investments is largely attributed to the lack of huge deals.

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The report stated that despite the decline, India still stands out as a key focus point for VC investors in the continent. It also mentioned that the demonetization witnessed towards the end of 2016 has increased transactions for mobile wallet providers and payment companies alike. Additionally, the report stressed that corporate interest in fintech in India is likely to rise in the coming year.

KPMG International’s report on global fintech investment had revealed that the total fintech funding in 2016 fell to USD 24.7 billion from USD 46.7 billion in 2015. The deal activity was also observed to have reduced from 1,255, to stand at 1,076.

In spite of the fall in merger and acquisitions (M&A) and private equity (PE) fintech deals last year, VC investments reached a significant position with USD 13.6 billion worth of investments.

Warren Mead, Global Co-Leader of Fintech, KPMG International and Partner, KPMG UK said, “Looking ahead to 2017, with the implementation of the revised Payment Services Directive (PSD2) rapidly approaching in Europe, and growing pressure for real-time payments and open banking all over the world, there is no doubt that some exciting developments are coming down the pipe”.

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