IT sector attracts $87 mn VC investments in Q1

Rediff India Abroad Home | All the sections

Search:

The Web

India Abroad

Get news updates:

Mobile Downloads

Article Tools

Home > India > Business > PTI > Report

IT sector attracts $87 mn VC investments in Q1

May 13, 2008 13:11 IST

India's IT and IT enabled services sector have emerged as the preferred space for venture capital investments in the country in the first three months this year, attracting over two-third of the total deals worth $144 million, a latest report says.

"With 14 deals worth about $87 million, the Information Technology and IT-Enabled Services industry retained its status as the overwhelming favourite among VC investors during Q1 '08," according to a latest report by research firm Venture Intelligence Service.

During the quarter, venture capital firms have invested $144 million through 21 deals, a sharp decline compared to the corresponding period previous year which had recorded 28 deals worth $173 million.

The maximum VC investment was attracted by online travel portal Cleartrip.com of about $18.5 million from DAG Ventures.

Further, Deeya Energy attracted ($15 million) investment from New Enterprise Association, Soham Renewable Energy ($15 million) from D E Shaw and Ikya Human Capital ($8 million) from India Equity Partners.

However, there has been a significant growth in terms of the deal size of the investments.

"Online Services companies dominated the quarter accounting for a 75 per cent share of the invested capital," Venture Intelligence CEO Arun Natarajan said.