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

India Dominates Global Digital Banking List

Indian banks have observed the most notable gains in day-to-day banking (+9.8 pp) and expanding relationships (+3.4 pp)….reports Asian Lite News As many as 9 Indian banks have been recognised as ‘Digital

India Tops Global Growth Charts Again

India Retains Top Spot as Fastest-Growing Economy, Only Major Nation to Exceed 6%…reports Asian Lite News India remains the world’s fastest-growing major economy and the only nation projected to achieve over 6%
Go toTop

Don't Miss

Dhawan announces 75 million dollar Global Investment Sports Tech Fund

The Fund, consisting of a greenshoe option of 25 million

India, UK launch health care alliance in a bid boost ties

Professor Stephen Powis, National Medical Director of NHS, England, said