Corporate-backed deal numbers are remaining resolute in India but cash levels are dropping sharply as the space remains ever more reliant on the consumer economy.

The amount of capital raised by India-based companies in corporate-backed rounds fell by more than half in the second quarter of this year despite deal volume staying resolute, GCV data indicates.

Companies secured a total of approximately $1.97bn for the quarter, down from $4.35bn in Q1 2022 and representing only 28% of the cash raised in Q3 2021. However, the deal count numbered 78, down only slightly from 82 and comfortably higher than in any quarter ever before the second half of last year.

Preliminary figures from Q3 show the figure for both columns is set to drop further, evidence of a slowdown in funding from many domestic corporates, as the country becomes more reliant on foreign corporates, in turn leaning away from hard tech to consumer-facing businesses.


Foreign investors are still making their presence felt

Much of…

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Robert Lavine

Robert Lavine is special features editor for Global Venturing.