Venture capital investment in India grew impressively during the second quarter of 2008. Between April and June, VCs invested a total of $238 million in 17 deals, up 120 percent from the $108 million invested during the same period last year, according to Dow Jones VentureSource. That makes it the second-highest quarter in VentureSource’s records.

The biggest sector was advertising/marketing, which received $89 million. A lot of that money went to a single deal — a $70 million second round for Laqshya Media of Mumbai. (Downtown Mumbai is pictured above.) Jessica Canning, VentureSource’s global research director, says in the report summary that the Laqshya deal taps into two trends — the increasing interest in advertising in India, and a growing number of second round deals. (During Q2, $161 million was invested in second rounds, more than in all of 2007.)

It’s interesting to see venture investment increase so dramatically, more than doubling the money invested during a relatively slow Q1. The biggest industry was business and financial services (which includes advertising), which received a total of $131 million, followed by information technology, which fell to $33 million from $73 million during the same period last year.

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