“$10 billion, which is Rs 80,000 crores of funding per year, is enough to build our ecosystem,” he said.
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According to Anandan, before the period of exuberance in 2021 and 2022, India’s annual run rate was around $8-10 billion. “In 2021 and 2022 combined, in those two years, India got $60 billion of funding.”
“Last year (funding) was $7 billion. Everybody’s like, that’s really low. Well, not really. It could have been zero because we got six years’ worth of funding in two years.”
Anandan said around $20 billion of private capital is lying uninvested and is committed for investment in private firms and startups in India.
On December 13, ET reported that according to Rajan, India has $20 billion of venture capital dry powder, and the primary focus for investors is AI.
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Scaled startups that got funding in the boom period of 2020 and 2021 are expected to seek additional money in 2024, as per a report by Bain & Company and Indian Venture and Alternate Capital Association (IVCA).Additionally, risk-capital investors looking to widen the base of their investments could turn to more traditional businesses during the year, according to the India Venture Capital Report 2024,
As per the report, investments in India in 2023 declined to $9.6 billion from $25.7 billion in 2022.
According to Rajan, in the next seven to eight years, there will be at least 100 Indian startups that will go for initial public offerings (IPOs).
“Last year, there were 280 companies that went public in India, there were about 40 of them that raised over (Rs) 400 crores of issue value,” he added.
Over the past five years, business-to-business (B2B) and manufacturing technology sectors constituted 56% of the new listings on the main board, according to a joint report by Boston Consulting Group and venture capital firm Matrix Partners.
