The Right Time is Now!!
With big players like Foxconn setting up specialised incubation centres for Indian Startups and constructive venture capital funds, the time for investment in India can never be better. With an improvement in our Global Fitch Rating, figuratively giving a stable outlook, the economic and political factors in the country are most conducive for venture capital investment, then it was ever before.
Global Recognition and a national commitment is an evidence that we are consciously aware of the start-up explosion in India and the increasing start up flow only seconds that opinion. A rich talent base has enabled people to create new business ideas and innovation specifically in relation to technical and technological expertise, this startup community in India needs to continue to be supported to enable it to grow further and hence a sustainable venture capital flow is essential.
In recent developments ‘The Indus Entreprenurs (Tie’) of the Silicon Valley were quite enriched by the Prime Ministers recent visit there , whose prima facie objective was to create an environment of investment ease and confidence . Market Experts thinking on similar lines agree in unison that India has recognised that start-ups are the way to generate employment and jobs, and has raised this into the national consciousness as a national priority.
Indo-U.S. bilateral trade is already on the onset of growing from the current $100 billion to $500 billion, as vast investment opportunities in India await for American companies, especially in the infrastructure sector like roads, ports, railways and clean energy.
Also any ongoing international economic uproar least affects India as the savings on account of weakening oil prices have aided the government to earmark greater funds for the infrastructure sector and social sector schemes. Efforts are in place to put in place a predictable and fair tax regime, and invited greater capital to help raise multilateral trade between India and the World.
The economy is focussing in prompt decision making policies and transparent tax structure so as to improve the ease of doing business simultaneously encountering multiple legacy issues which have earlier tarnished the purview of the Indian Tax regime.
More importantly trade policy forums are working towards improving trade relations and break down unnecessary barriers , and such endeavours are being mutually taken by Indian as well as international companies . Also trade figures of the last quarter clearly reflect scale the increasing economy and relative stability. When talking in more statistical terms, the existing Venture capital investors have already realised profits of almost Rs 40.000 crores so far in 2015 from various investments, with Private Equity investors also gaining a fair share . Keeping that in mind 2015 so far has been the best year for ‘exits’ by the PE and VC investors.
When venturing into more specific aspects; Media and Entertainment industries and IT have spearheaded the list of successful exits this year with collectively returning 2.7 Billion to US investors alone. Returns from e-commerce investments have been the highest. They have been significantly higher than returns in the rest of the sectors. Early stage investments have yielded a return of 35.64 per cent. Which in essence reflects that the stages of funding are relatively more secure.
The Y-O-Y growth since 2014 touched a whopping 260% according to then research firm Privco , touching almost $3.86 billion, however it still has a long way to go in order to achieve its 2006 VC investment trends.
For starters Japanese investment giant Softbank has openly expressed its inclination towards SnapDeal , and huge investments have been received by Ola and Housing.com from the colossus investment firm.
Besides Softbank, American VC firms Silicon Valley based Sequoia Capital and Accel Partners who respectively funded Google and Facebook, also see great opportunities in the India Start-up Market.
Right from seed funding, may it be from angle investors or equity crowd funders, the start-up success rate is categorically improving. Statistics show that second Round funding have reaped greater benefits in the Indian scenario, further also giving foundation for expansion.
In entirety all major factors to this questions are in compliance to each other creating an environment of greater benefits . May it be political or financial , all major stakeholders have made it priority to improve the ease of investment is the country and hence there is nothing wrong to say that , yes now the time is right .
|Top Investors based in India||Start-ups Funded|
|Helion Venture Partners||NetAmbit, TAXI For Sure, PubMatic. Komli, MakemyTrip, Yepme,|
|Inventus Capital Partners||CBazaar Poshmark, Savaari, Farfaria, Policy Bazaar.com,.|
|Zodius||BigBasket, Culture Machine|
|Bain Capital Private Equity||ASIMCO, Biglobe, Atento, BPL BMC Software,|
|Lok Capital Group||Everest Edusys And Solutions|
|Accel Partners||Myntra Flipkart, , Freshdesk, Book My Show, Zansaar, Probe, , CommonFloor BabyOye|
|Blume Ventures||Printo , EKI Communications, Audio Compass, Exotel,|
Analysis by Additya Sharma
Student at Enactus -SSCBS