VC investment into India by U.S. and European firms is on a staggering pace in 2014 compared to previous years, according to the PitchBook Platform. 2014 has already brought over $100 million more in total VC invested than 2013, grabbing a few mega-deals along the way. Since 2009, the last year without growth in capital invested, the country has been gaining VC dollars on a mostly steady pace, but 69 deals have brought it over $1 billion in just a little more than six months in 2014.
The IT sector has received some large fundings—Olacabs raised over $41 million last week and Hungama Digital Media Entertainment received an investment of $40 million this month—but it’s been the B2C industry that is driving the record year, bringing in almost 70% of the overall investment. With e-commerce booming in the second most populous country in the world, companies like Flipkart and Snapdeal have both raised over $200 million in the past six months, and each of the top five India VC financings in 2014 to date has come from the space, together totaling $583 million.
India and its new Prime Minister unveiled an economic budget recently, putting a focus on increased investment in the country. With a population of over 1.2 billion (a number of consumers some four times as large as that of the United States) and a continuance in economic growth, investment into B2C should continue to grow.