The number of private equity (PE) and venture capital (VC) deals in Tamil Nadu has fallen by 38% for the quarter gone by, to 10 deals. But an analysis done by Venture Intelligence, a research service focused on private company financials, transactions and their valuations, shows that the amount that these 10 firms managed to attract went up significantly.

According to Arun Natarajan, founder and managing director of Venture Intelligence, PE investments in India have hit an all time high in Q2 of 2018 and companies in Tamil Nadu have benefited from the boom as well. “The return of interest in manufacturing and related industries has benefited the state — represented by investments in companies like Comstar and Archean Group,” he added.

Fourth slot

Mr. Natarajan also pointed out that startups in Chennai have bounced back to the number four slot after those in Bengaluru, the National Capital Region and Mumbai in terms of investments.

“And companies in Coimbatore also beginning to get noticed by investors,” he added. In the first quarter of 2018, 16 startups in Tamil Nadu managed to get funding amounting to $153 million.

The Venture Intelligence analysis showed that Leap India Food and Logistics Pvt. Ltd, promoted by the family of former Formula One racer Narain Karthikeyan, and social media analytics platform Synctag raised funds. Both firms are from the Coimbatore region.

The number of angel investments improved to 4 from 3 in Q1.

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