New Delhi, July 23 (IANS) The pandemic has severely impacted the fund infusion by venture capital investors into companies and startups, and this is likely to remain muted in the ongoing quarter (July-September), said a KPMG report.
Nitish Poddar, Partner and National Leader, Private Equity at KPMG in India, said: "India is a very attractive market for VC investors. While funding is likely going to be muted again in Q3 2020, due to the impact of Covid-19, investment is expected to pick up again by the end of the year."
He added that fintech remains one of India's most attractive sectors for investment, in addition to healthtech, medtech and gaming. Over the longer term, agritech is well-positioned to see increasing investment as well, Poddar added.
The report noted that after steadily rising throughout 2019, India saw a record quarter to close off the year. That has, however, since reversed inevitably, given the impact of the pandemic.
"It remains to be seen how long the slump will persist, or even its true depth, although deals are still able to get done if need be," the report said.