MUMBAI/CHENNAI: After a brief lull, investors appear to be actively looking for deals and writing checks to Indian startups.
Recently, domestic and international venture capital (VC) and private equity (PE) investors, such as US-based Norwest Venture Partners, have been raising new funds. A significant amount of this capital has been allocated to India, putting pressure on investors to deploy money.
For example, LVMH-backed PE fund L. Catterton is launching a new investment vehicle to fund consumer-focused Indian companies. In fact, industry executives say an estimated $25 billion of India-specific capital is sitting unallocated. Moreover, as China faces an economic slowdown, India has become a more desirable destination for investors in the broader Asian market.
“China’s economic slowdown has benefited India and its impact will continue for some time,” said founder and managing director of IvyCap Ventures, a homegrown VC fund that has backed startups such as Purple and Dhruva Space. Vikram Gupta, a partner, told TOI. The company held its final close for Fund III on Tuesday, raising Rs 2,100 crore.
Approximately Rs 125 billion from the Rs 210 billion fund will be used for 25 new Series A investments, while a portion of the fund’s assets will also be earmarked for additional investments in existing companies. IvyCap Ventures is betting on consumer-focused companies that deploy AI, machine learning, and other emerging technologies to build products. “Series A is our sweet spot. In addition to consumer tech, we are also closing two health tech deals as we speak. We also have fintech, space tech, and climate deals. We also see opportunities in the variable, clean technology space,” said Mr. Gupta, adding that deals, including those in later stages, will increase in the second half of this year.
To be sure, PE-VC funding is still lagging — $8.1 billion was invested between January and April, compared with $12.3 billion in the same period last year, according to data from market research firm Venture Intelligence. It went below. However, with sufficient capital, new funds being launched by investors, and the ecosystem beginning to stabilize, we expect to see significant momentum in trading in the second half of the year. Last week, Norwest Venture Partners closed a $3 billion fund, part of which will be used to invest in India, along with the US and Israel. The company, which has been operating in India since 2005 and has backed unicorns such as Swiggy and OfBusiness, typically invests between $250 million and $300 million a year in the country. Earlier this year, Facebook co-founder Eduardo Saverin’s B Capital also raised a massive $750 million to bet on late-stage technology companies focused on Asia and North America. Indian startups Meesho, PharmEasy and Khatabook are among his portfolio companies.
“The general feeling is that we will see a sustained recovery on a year-on-year basis from the second half of 2024.In the VC sector, domestic companies such as Blume Ventures, Fireside Ventures, and Anicut Capital have They’re making new bets,” said Arun Natarajan, founder of Venture Intelligence.
Michael Chiu, Global Co-CEO said. The company’s Asia platform has entered into a joint venture partnership with former Hindustan Unilever chief executive Sanjiv Mehta to drive its India strategy. Gurgaon-based institutional investor Oyster Global recently launched a Rs 440-crore fund that will largely fund technology startups. Rather than investing directly in startups, the company plans to raise funds through investments in VC and PE funds.
Recently, domestic and international venture capital (VC) and private equity (PE) investors, such as US-based Norwest Venture Partners, have been raising new funds. A significant amount of this capital has been allocated to India, putting pressure on investors to deploy money.
For example, LVMH-backed PE fund L. Catterton is launching a new investment vehicle to fund consumer-focused Indian companies. In fact, industry executives say an estimated $25 billion of India-specific capital is sitting unallocated. Moreover, as China faces an economic slowdown, India has become a more desirable destination for investors in the broader Asian market.
“China’s economic slowdown has benefited India and its impact will continue for some time,” said founder and managing director of IvyCap Ventures, a homegrown VC fund that has backed startups such as Purple and Dhruva Space. Vikram Gupta, a partner, told TOI. The company held its final close for Fund III on Tuesday, raising Rs 2,100 crore.
Expanding
Approximately Rs 125 billion from the Rs 210 billion fund will be used for 25 new Series A investments, while a portion of the fund’s assets will also be earmarked for additional investments in existing companies. IvyCap Ventures is betting on consumer-focused companies that deploy AI, machine learning, and other emerging technologies to build products. “Series A is our sweet spot. In addition to consumer tech, we are also closing two health tech deals as we speak. We also have fintech, space tech, and climate deals. We also see opportunities in the variable, clean technology space,” said Mr. Gupta, adding that deals, including those in later stages, will increase in the second half of this year.
To be sure, PE-VC funding is still lagging — $8.1 billion was invested between January and April, compared with $12.3 billion in the same period last year, according to data from market research firm Venture Intelligence. It went below. However, with sufficient capital, new funds being launched by investors, and the ecosystem beginning to stabilize, we expect to see significant momentum in trading in the second half of the year. Last week, Norwest Venture Partners closed a $3 billion fund, part of which will be used to invest in India, along with the US and Israel. The company, which has been operating in India since 2005 and has backed unicorns such as Swiggy and OfBusiness, typically invests between $250 million and $300 million a year in the country. Earlier this year, Facebook co-founder Eduardo Saverin’s B Capital also raised a massive $750 million to bet on late-stage technology companies focused on Asia and North America. Indian startups Meesho, PharmEasy and Khatabook are among his portfolio companies.
“The general feeling is that we will see a sustained recovery on a year-on-year basis from the second half of 2024.In the VC sector, domestic companies such as Blume Ventures, Fireside Ventures, and Anicut Capital have They’re making new bets,” said Arun Natarajan, founder of Venture Intelligence.
Michael Chiu, Global Co-CEO said. The company’s Asia platform has entered into a joint venture partnership with former Hindustan Unilever chief executive Sanjiv Mehta to drive its India strategy. Gurgaon-based institutional investor Oyster Global recently launched a Rs 440-crore fund that will largely fund technology startups. Rather than investing directly in startups, the company plans to raise funds through investments in VC and PE funds.
