India Saw Record $45 Billion Investment From Venture Capitalists In 2019

India saw a record $45 billion investment from venture capitalists (VCs) in 2019 and the growth sentiment was more towards fintech and Software-as-a-Service (SaaS) companies, experts said on Monday (17 February).

Amid the growing confidence in the Indian market, consumer tech and the BFSI sectors continued to dominate annual investment by value, said Prabhav Kashyap, Manager, Bain & Company, during the Indian Private Equity & Venture Capital Association's (IVCA) ninth annual conclave in New Delhi.

IVCA Chairman Padmanabh Sinha spoke about the growth of PE and VC industry and its contribution to the Indian economy.

"PE & VC clearly have become anchors of the economy and playing a structural role in economy... it provides the right momentum to the Indian economy as investee companies create new jobs as well as give through increased tax revenues," Sinha said in a statement.

However, he added that for the industry to grow, the country needs more capital as well as a talent pool.

The two-day conclave is being attended by nearly 80 private equity, 65 venture capital funds, 50 Limited Partners and Family Offices, 20 start-ups and 15 government representatives.

Sanjay Nayar, CEO, KKR India, said that corporate governance is vital for the industry.

"Some of the government's reforms may seem painful in the short-term but provide a gain in the long term," he added.

According to Sanjeev Sanyal, Principal Economic Advisor to the Centre, free markets should be allowed to function in an appropriate way in the country.

While discussing where we are lagging behind, he said: "The bureaucracy, judiciary, and the private sector... all lack correct lenses."