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May 25, 2004

Indian VCs look beyond outsourcing

By Arun Natarajan

My article on the above topic was published recently in the AlwaysOn "blogzine".

Here is the article's intro:

While India's software and business process outsourcing (BPO) services companies hog the headlines, venture capitalists in the country have begun to cast their nets wider. Recent quarters have seen private equity firms investing significant amounts of money into sectors such as pharmaceuticals, high-tech manufacturing, retailing, banking, media, cinema theaters, and even restaurant chains. So what's cooking?

Over the last two years, VCs in India have been behaving pretty much like their U.S. counterparts: making fewer but larger investments and focusing on late-stage companies. (The few early-stage bets have been reserved for the booming BPO sector.) However, in recent quarters, two India-specific trends have started to play out quite strongly: (1) Indian VCs are looking beyond software and BPO services, and (2) they aren't shy about investing in companies focused on the domestic market.

Click Here to read the full article.

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Arun Natarajan is Editor of TSJ Media. He can be reached at arun(at)tsjmedia.com
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