March 15, 2024
1 min read

India Holds Strong in VC Funding Race

Despite facing headwinds, India’s VC landscape exhibited resilience in 2023, marking a year of continued moderation…reports Asian Lite News

India retained its position as the second-largest destination for venture capital and growth funding within the Asia-Pacific region last year, a report showed on Thursday.

Despite facing headwinds, India’s VC landscape exhibited resilience in 2023, marking a year of continued moderation, according to the report by Bain & Company in collaboration with the Indian Venture and Alternate Capital Association (IVCA).

“In a year seemingly rife with hurdles, investors demonstrated resilience by adjusting to the evolving landscape. There was a perceptible shift in investment focus from tech-first bets to more traditional sectors underpinned by strong fundamentals — such as healthcare, retail, and financial services,” said Sai Deo, Partner, Bain & Company.

Investment activity echoed a muted sentiment globally, with investments declining by 65 per cent relative to 2022 and reaching $9.6 billion in 2023 compared to $25.7 billion in the previous year.

Generative AI gained significant momentum as funding soared from $15 million to $250 million over 2022-23 globally.

Overall, tech-first sectors (consumer tech, fintech, and software/SaaS) maintained their dominance in 2023, capturing nearly 60 per cent of funding.

Investor focus drifted to traditional sectors with strong fundamental tailwinds (banking, financial services, and insurance, healthcare) as well as emergent themes [electric mobility and generative artificial intelligence), the report noted.

Electric mobility was the other green-shoot sector that gained salience (from 3 per cent to 7 per cent of funding), as the rising maturity of the ecosystem fuelled investor interest, the findings showed.

“Over the longer term, global investors will likely remain bullish on India as an investment destination with numerous promising sectors and themes primed to draw investor interest,” said Sriwatsan Krishnan, Partner, Bain & Company.

ALSO READ: Tata Motors Pours Rs 9,000 Cr into TN

Previous Story

Bhandari gets nod to appeal against extradition from UK

Next Story

India’s IT Spending Hits $44 Billion

Latest from Business

Microsoft Cuts Deep

The fresh job cuts come less than two months after Microsoft announced it was laying off more than 6,000 employees…reports Asian Lite News Microsoft is set to cut around 9,000 jobs —

Northeast Is Growth Engine

Scindia also provided updates on the government’s efforts to facilitate the entry of SpaceX’s Starlink service into India. “All due diligence from the Ministry’s side is complete Union Minister for Communications and

India to Empower Global South

India is emerging as a pivotal force in the global transition to clean energy, with Union Minister for New and Renewable Energy, Pralhad Joshi, asserting that the country is empowering the Global

Maruti’s Global Push Breaks Record

June shipments hit 37,842 units, signalling robust global demand Maruti Suzuki India recorded its highest-ever monthly exports in June, shipping 37,842 units and marking a new milestone that highlights the company’s expanding

India Bats for Fairer Global Finance: FM Sitharaman

FM Sitharaman stated that we believe that optimal regulation fosters innovation and stability….reports Asian Lite News India supports reforms to the international financial architecture to enhance inclusivity and equity, including Multilateral Development
Go toTop

Don't Miss

India Pavilion attracts over 128k visitors since its launch

The Indian pavilion is set to host Diwali celebrations starting

India’s external debt up 8.2%

The long-term debt estimated at $499.1 billion, formed the largest