TLDR:
- India’s venture capital market is showing positive signs this year compared to the previous years.
- Anuradha Ramachandran, Managing Partner of TVS Capital Funds, highlighted the return to normalcy among investors and entrepreneurs.
India’s private equity and venture capital market appears to be on an upswing this year, with a sense of ‘normalcy’ returning to the investment landscape. Anuradha Ramachandran, the Managing Partner of TVS Capital Funds, noted that excessive funding during the pandemic era of 2020 and 2021 led to structural issues in the market. However, as the country moves past these challenges, both investors and businesses are focusing on sustaining growth without the structural advantages that were present during the pandemic. Ms. Ramachandran highlighted the importance of realistic expectations from both investors and entrepreneurs, which is expected to boost the growth of the domestic funding market.
The funding winter that set in a couple of years ago due to global economic uncertainty and lack of private fund availability is beginning to thaw, and India remains an attractive market for early-stage investments. However, the funding markets in India still need to mature in terms of return on capital. Ms. Ramachandran also addressed the issue of women in entrepreneurship, noting that while women are credit averse and responsible, opportunities for them may be limited. She praised the presence of women co-founders in some start-ups as a positive sign for the industry.
