The year 2022 saw a record number of India-focused venture capital (VC) and private equity (PE) funds raising fresh funding for investing in various tech startups of the country, outpacing all previous year records. This is despite a slump in VC and PE rounds and high inflationary pressures, Trend reports citing Financial Express.
India-focused VC funds raised a whopping $14.1 billion in capital to be deployed in startups in the first half of 2022, according to a report published by Silicon Valley Bank. This is more than a 3X growth compared with last year when VC funds raised only $4.2 billion in capital for Indian startups.
The tech-based commercial lender also said in its report that around 76 new funds were launched in the country this year, compared with just 28 in the previous year. Some of the notable include Sequoia India’s $825-million growth fund, Elevation Capital’s Fund VIII worth $670 million, Accel India’s sixth fund worth $550 million and many others.
Rupee depreciated 20-fold since independence; here’s how ‘Make
in India’ may boost Indian currency
Some of these international firms often invested in Indian
companies out of global, Asia, or non-geographic specific funds.
Now, we are seeing firms building out specialised teams - often on
the ground - to invest across the Indian innovation landscape, the
report added.
Lightspeed India Partners has been active since 2004, while Sequoia India, the most prolific investor, established its India presence in 2006 with the acquisition of Westbridge Capital Partners.