The Indian Private Equity & Venture Capital Association (IVCA), in partnership with Zinnov, has released the findings from its report titled, “Creating Value for 1.3 Billion”. The study is aimed at creating a playbook for policymakers and private investment players to work together to accelerate India’s economic aspirations. The study emphasizes the importance of symbiotic partnerships and how such partnerships are essential in bolstering innovation in the ecosystem.
India’s aspiration to become a $5 trillion economy will need an intricate network of institutions, both public and private, to facilitate the production, dissemination, and adoption of new, economically-relevant knowledge. The investment community is an intrinsic part of this network and has so far invested more than $42+ billion across 2100 startups in 2019. A positive consequence of this is the digital economy being built, aided by startups. Small Medium Businesses (SMBs) are increasingly relying on startups to adopt digitalization to drive revenues, productivity, and efficiency at scale.
The study also noted that PE/VC investments are not only creating direct and indirect jobs, but also bubbling up newer fast-growing job segments such as professional services, freelancers, delivery and driver partners. Further, technology-led solutions are touching the lives of Indians in the remotest corners of the country and also across income segments because alternative investment funds are focused on the Indian market too.
In a statement, Gopal Srinivasan, Chairman & MD, TVS Capital, said, “The Indian startup ecosystem has had a profound impact on the country’s economic shift in the last decade, spearheaded by the unequalled entrepreneurial founder talent. Risk-taking venture capitalists have given wings to those selected by talent and talent alone, to execute and metamorphose their dreams into reality.”
Rajat Tandon, President, IVCA, in a statement said, “The Venture Capital investing space in India has been constantly evolving, with the year 2019 witnessing nearly 500 deals, amounting to $2.1 billion. Further, the coming up of several new VC funds and the successful raising of new rounds by old funds reinforces the investors’ confidence in the domestic market.”