IT is an investor favourite, with investments worth $379 mln

Even as private equity and venture capital firms are tightening their purse strings, they prefer to park whatever money they are willing to spend in IT sector.

FP Staff July 09, 2012 15:48:28 IST
IT is an investor favourite, with investments worth $379 mln

The IT & ITeS became an investor favourite in April-June with the sector attracting 21% of total private equity and venture capital investments made during the quarter, Venture Intelligence, PE and M&A research firm, has said.As much as $379 million flowed into the industry.

The sector gained the most across reported investments, snatching the lead from healthcare & life sciences industry that topped the previous quarter.

IT is an investor favourite with investments worth 379 mln

Reuters

"Last quarter healthcare had the most share of the pie with hospital chains such as Vasan Eye Care attracting investments and this time it is IT.

Healthcare and IT alternate with each other to attract more capital and it is likely to continue. Energy and infrastructure companies also absorb a lot of funds but off late due to policy uncertainty," said Arun Natarajan, Founder Venture Intelligence.

Overall, investments declined 34 percent to$1,848 millionduring the quarter, the report said. As many as 102 deals were struck, including private equity and venture capital investments.

The investments in IT and ITes sector were lead by Sequoia and SAP Venture's second round of funding to Just Dial, the online directory service, worth $60 million. Advertising firm Pubmatic attracted $45 million from new investor August Capital and classifieds firm Quikr got $32 million round led by new investor, Warburg Pincus.

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