The latest analysis shows that Venture Capitalists are leveraging the growing demand for online retail, especially in the APAC region.
A recent report by Global Data has revealed that the majority of Venture Capital funding is centred around the APAC region. Furthermore, VCs are looking to capitalise on the growing demand for online retail as a result of smartphone usage and internet penetration.
While there has been a 4 percent drop in the share of VC deals (from 49 percent in the third quarter of 2017) the APAC region still accounted for US$420.9 million of the total investments (US$937.3 million) across the globe during the reporting period.
“Venture capitalists are leveraging the growing demand for online retailing, especially in the APAC region. The funding is being utilised by online retailers to broaden their reach and introduce new product categories along with expanding their reach in other countries,” said Vijay Varma, Retail Market Analyst at Global Data.
Private equity investments in the APAC region were centred around online food, grocery and niche lifestyle brands, the report found. Analysis by Global Data also fund that the majority of VC funding is focused on food and grocery as well as an increased demander organic and natural products.