Private equity to springboard India’s economic recovery
The consistent success of the Indian startup ecosystem is by now no secret, and despite an incredibly challenging and tumultuous year, private equity is rushing to back entrepreneurial founders and their brands, according to new figures.
Inc42 have reported that the total startup funding in the first half of 2021 is already 95% of 2020’s total. If the current rate is continued, these record-breaking deals should amount to a total of $22.6 bn in 2021. fintech, enterprise tech and ed tech have spearheaded these funding rounds – amounting to 48% of the total.
India already has the third biggest startup ecosystem in the world and an ever-growing number of elusive ‘unicorns’, and the private equity continuing to flood into the country will undoubtedly contribute to the potential growth of these ambitious and pioneering small companies. It is not just Indian ultra-high-net-worths witnessing the potential in the subcontinent’s startups, but it is also everyday Brits with their eyes on investment opportunities that want to form symbiotic relationships with these scaling firms. Data from JPIN VCATS shows:
- Nearly 14 million Brits are looking to invest in emerging markets (13,799,000),
- The BioTech and medical sectors favoured by 35%
- FinTech chosen by 29% of British investors
- Almost half of British investors (45%) choose greentech and sustainable companies, even more than who’d choose to invest in British stocks and shares (36%)
Naya Gala, founder of JPIN VCATS, discusses these astonishing figures and what it may mean for India at large: “These figures are incredible: India’s ambitious and entrepreneurial small businesses and startups are raising more and more money each month. This is translating into the development of genius new technologies, massive growth of the companies involved, and subsequently, the economic and technological development of India as a whole.
Both investors from further afield, and governments like the UK looking to form symbiotic trade deals with India, will benefit from the growth of these startups. It is great to see investors and governments alike have their eye on the pulse.”
