Investment by PE, VC More Than Halve to $1.9B in August, Selected Segments See a Jump

Investment by private equity and venture capital (PE-VC) funds more than halved to USD 1.9 billion in August as there were no large deals.Compared to private equity and venture capital (PE-VC) funding of $1,679 million during the same time last year, investment declined by over 50 percent to $870 million this year across 75 deals. Investment in B2B (business-to-business) software companies suffered due to slow consumption growth and distress among investors due to COVID.

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However, there is a “perceptible improvement” in investor confidence as the Indian as well as global markets begin to open up. Even, few sectors like Programming tools, logistics, education, travel & transport software capitalized on an advantage. As universities nationwide adopted online teaching modes, companiescame up with better software systems to ensure a hassle-free learning process. The Ed-tech sector surged at a high pace due to the catastrophe and received $89.69 million in contrast to a meager $2.33 million last year.

Customer relationship management (CRM) also garnered a lot of attention because even small businesses took to digital platforms due to the pandemic. Customers refrained from going to the physical storesfor purchases, due to thefear of coming in contact with the virus. Online retail and e-commerce became areliable option for purchasing essential goods. The sector witnessed a surge in the number of orders as the customers tried to comply with physical distancing.

Companies providing doorstep delivery services of grocery, food, and packages capitalized on the new trend. Startups came up with new services to ensure timely delivery and good movements. COVID has created a new market scenario and companies need to change strategies to comply with the new normal.