Private Equity and Venture Capital companies invested $400 million across 18 deals in Tamil Nadu-based companies during the second quarter of 2023.
The investment value has dropped by 35.69%, compared with the same period last year. During the second quarter of 2022, these companies invested $622 million across 21 deals, according to the data provided by Venture Intelligence, a research service. focussed on private company financials, transactions and valuations.
Of these 18 start-ups, 12 are headquartered in Tamil Nadu, while the rest have moved their headquarters out of the State to destinations close to investors. But these firms continue to operate and have a major presence in Tamil Nadu.
If one were to look at the data for the first six months of this year, the investments have fallen by 64.61%. From January to June 2023, these companies pumped in $701 million across 34 deals, while during the same time last year around $1,981 million was invested across 47 deals. Even angel investments have dropped. For the second quarter of 2023, around 9 companies have received funding. During the same quarter in 2022, the number of deals stood at 16.
Arun Natarajan, Founder and Managing Director of Venture Intelligence, noted that Tamil Nadu had fared better than the rest of India. “World is crying about funding winter. Tamil Nadu has never had a great summer funding to suffer during winter. If you compare the data with the previous quarter, we have done well,” he pointed out.
