Buoyed by the success of ride-hailing firms Ola and Uber Technologies Inc., investors are pouring funds into the next wave of mobility startups in India as urban transportation bookings move online.
Such record levels of dry powder in the market suggest an improvement in the fundraising environment, and reflect growing interest of limited partners in the India story.
Venture capitalists are looking to back entrepreneurs in cities such as Jaipur and Kochi in order to find these products and services that can unlock the vast but scattered potential of small-town India.
Several venture capital professionals, and founding members of leading VC firms, are setting up their own firms as investors look to back smaller funds, hoping their nimbler approach will deliver bigger returns.
Indian companies have been involved in deals worth a record $97.6 billion this year. Top banker JPMorgan Chase & Co. is predicting more offshore interest in the nation, particularly in technology, media and telecom.
India's $2.3 trillion equity market has surged in recent years, and is about to get a new endorsement from the nation's pension regulator. India's equity culture may also get a boost from a stewardship code to be rolled out for the country's fund managers to push for corporate-governance best practices.
Private equity exits in India grew to $15.7 billion in 2017, making it the best year for PE exits, according to Bain and Co. For a long time, Indian private equity was saddled with the constraint of low exits. That trend appears to have changed since 2017 marked the third year of strong exit momentum.
The value of private equity and venture capital investments in Indian companies during the quarter ended March 2018 declined to $3.7 billion across 133 deals, compared with $7.3 billion across 200 deals during the same quarter the previous year.
A growing number of private banks and financial services firms are taking advantage of a vibrant primary market in India to unlock value of their diversified subsidiaries.
Blackstone Group LP says it's found the formula for making money in India, which has become its top-performing market globally after the firm began focusing on bigger buyout deals.