India retains 2nd largest VC hub tag in Apac
Investment activity echoed a muted sentiment globally, with investments declining by 65% to 9.6bn in 2023 from $25.7-bn in 2022
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Focus Shift
- Tech-first sectors lead funds inflows in 2023
- Consumer tech, fintech, and software/SaaS account for 60% of funding
- Investor focus drifted to traditional sectors
- Strong fundamental tailwinds supporting banking, fin services, insurance and healthcare
New Delhi: India retained its position as the second-largest destination for venture capital (VC) and growth funding within the Asia-Pacific region last year, a report showed on Thursday.
Despite facing headwinds, India’s VC landscape exhibited resilience in 2023, marking a year of continued moderation, according to the report by Bain & Company in collaboration with the Indian Venture and Alternate Capital Association (IVCA).
Sai Deo, Partner, Bain & Company, said: “In a year seemingly rife with hurdles, investors demonstrated resilience by adjusting to the evolving landscape. There was a perceptible shift in investment focus from tech-first bets to more traditional sectors underpinned by strong fundamentals -- such as healthcare, retail, and financial services.” Investment activity echoed a muted sentiment globally, with investments declining by 65 per cent relative to 2022 and reaching $9.6 billion in 2023 compared to $25.7 billion in the previous year.
