India is the hub of private equity (PE) and venture capital (VC) investments owing to the technology sector that is progressing at neck breaking speeds. In the past 3 years or so, India has seen more than seventy percent of the total PE and VC activity across the globe. Logically, venture capital and PE funds in India are big. Here are the top 5 venture capital trends in India:
1. Technological is Growing
Most sectors that contribute to the economy of India function extensively on technology, which has changed the way organizations and institutions operate. The services sector requires innovations in cloud, mobile, and social technologies to reduce operational costs and satisfy the customers. This presents an opportunity for investment via venture capital funds. Publishing, advertising, marketing, logistics, travel healthcare, education and the financial services industries are subject to these investments.
2. Indian firms are expanding overseas
Indian B2C companies are expanding overseas to increase their customer base and bring in more profits. This has been possible with the increasing use of internet and national boundaries breaking. With the help of social media, companies are reaching out to potential customers across the globe. As the demand for products increases, venture capital fund investments opportunities also grow. Investors are looking towards companies hoping to widen their horizons.
3. Growth of digital currencies
Indian markets have finally begun to accept digital currencies like Bitcoin, which will transform the modes of payments in the next decade. The blockchain technology behind Bitcoin is a great warehouse of venture capital funding. This is happening in tandem with demonetization in India that has already digitized currency.
4. Innovations in hardware
The demand for gadgets and accessories has witnessed an exponential rise. The Indian youth is tech-savvy and connects invariably over social media platforms via electronic gadgets, especially the smartphone. This is where VC investments are subject to a rise amongst interested investors since these gadgets create a universal chain. Gadgets such as GoPro cameras, smart watches, smart speakers and like are quite popular in India. These gadgets yield high returns with minimal investment.
5. Real estate opportunities
Real estate has been at the forefront of investment for a long time now. It has its ups and downs but relatively recent options like Systematic Investment Plans (SIP) have made investing in real estate funds a rising trend on a rise in India. Moreover, Make in India has made it simpler for construction companies and investors alike to reap its benefits. Finally, real estate funds offer a sizeable investment option for VC funds.
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