Skip to main content

What 's hot in India? A US-India VC's perspective

Vineet Buch of BlueRun has a nice post on "What's looking promising in India in 2006?" from an investor's perspective. Some extracts:

* Consumer Internet:
I predict that the interesting Indian internet businesses will be hybrid businesses, combining a variety of communication assets, not just the Internet; and these businesses will address needs unique to the Indian market rather than being mere copycats of Western models.

* Mobile Value Added Services:
Value-added services (VAS), such as ringtones and ringback tones, are big sources of revenue to Indian wireless carriers. Practically everywhere else, including the US, Korea and Europe, startups have managed to grow big by getting a significant chunk of this revenue. In India, however, the VAS provider market is fragmented and the carriers reluctant to share the pie and hence encourage innovation. It's time that some brave souls in India banded together to replicate the success of global players in the VAS ecosystem like WiderThan (a BlueRun portfolio company).

* Component Manufacturers for ODMs/OEMs

* Fabless Semiconductor Companies: (aka Chip Design)
Big companies like TI and Intel have nurtured a technical talent pool in India in their 15+ years of local operation. We are likely to see startups that partner world-class chip architects who depart these companies with business managers who understand the likely markets in North America and Europe. Often, at least some of the team members will have spent part of their careers in Silicon Valley.

* Clean Technology:
India's growing hunger for energy, its problems with pollution and waste management, and the domestic research base in electrochemistry, photovoltaics and efficient power generation provide fertile soil for clean technology startups.

* Software:
My bet is that as the large number of relatively undifferentiated offshore development companies consolidate, among the survivors will be companies that translate market knowledge gained by working with their customers into software products or services that can form the foundation of a scalable business.

Arun Natarajan is the Founder of Venture Intelligence India, which tracks venture capital activity in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.

Popular posts from this blog

VC Interview: Shailendra Singh of Sequoia Capital India

In a recent interview to Venture Intelligence, Shailendra Singh discussed some of the firm’s newer investments in the early stage segment including in the online payments space, the progress at a few existing portfolio companies and the active role the firm is playing in helping its portfolio companies scale and succeed in India and globally. Prior to joining the firm in 2006, Singh was a strategy consultant at Bain & Company in New York and before that, an entrepreneur in the digital media industry.

Venture Intelligence: How does Sequoia go about identifying potential early stage investments in India? Is there anything different you are doing today than, say, a couple of years back?

Shailendra Singh: There is a lot more focus on technology investing and early stage investing. In general, as you might remember a few years ago, we were doing primarily growth investing but in the past 18-odd months, we have had a very strong focus on early stage and that’s continuing. In terms of how…

PE investments in 2018 crosses $33-B to set new all-time high

Big Ticket investments in consumer apps Swiggy & Byju’s dominates year-end activity, even as investments in Core Sectors slow down
Private Equity (PE) investments in India rose to their highest ever figure of $33.1 billion in 2018 (across 720 transactions), according to data from Venture Intelligence (http://www.ventureintelligence.com), a research service focused on private company financials, transactions and their valuations. While PE investments have already surpassed the previous high - $24.3 Billion across 734 deals in 2017 - in the first nine months of 2018, the mega investments in Consumer Internet & Mobile startups such as Swiggy and Byjus towards the year-end, helped the 2018 total vault by 36% year-on-year. (Note: These figures include Venture Capital investments, but exclude PE investments in Real Estate.) The year witnessed 81 PE investments worth $100 million or more (accounting for 77% of the total investment value during the period), compared to 47 such transac…

KPMG Tops League Table for Financial Advisor to Private Equity Transactions in H1 2018

The transaction advisory unit of KPMG claimed the top position in the Venture Intelligence League Table for Transaction Advisor to Private Equity deals in the first half of 2018, advising deals worth $1.7 Billion. KPMG acted as the financial advisor to NHAI in the $1.5 Billion investment by Macquarie to operate 9 highway projects under the toll-operate-transfer (TOT) model. Ernst &  Young (which advised the $730 million asset sale by Indiabulls Real Estate to Blackstone) and Kotak (which advised the Vishal Megamart - Partners Group deal) accounted for the second and third spots respectively.
The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on value of PE and M&A transactions advised by Transaction and Legal Advisory firms.
Arpwood Capital (which advised the $760 million investment by Temasek in the $2.1 Billion Schneider Electric buyout of L&;T Electrical and Automation business) …