India is getting better and better in terms of investments. In 2017, the country has experienced the highest numbers in terms of investments. Both venture capital and private equity investments obtained about 589 deals, which included about 27 billion dollars of investments. This is the highest and shows a 37% growth from 2015. This is the reason why the Indian economy is expected to register a growth rate of about 7.5 percent in 2018. What are the factors that made the highest investment funding possible?
The huge size of investment in 2017 is not a sudden miracle that happened. There have been several factors that lead the market towards this growth rate. Here are all those factors:
Over the years, the market has seen a growth in the investors’ trust and confidence. The investors have become more confident about large investments, which has allowed better capital source opportunities for both private equities as well as venture capital investments. Both the volume and the value factors have become important in the investment market. As a result, the capital sources have seen an increase.
Businesses in almost every sector have evolved with time. In terms of capital, businesses in healthcare, skilled training, and others have achieved maturity. Plus the market presenting profitable exits has helped the businesses too. With that, the enterprises are now able to use more capital and raise their capital absorbing capacity. The increased capital capacities of the enterprises have made investors more efficient, supportive and interested towards the investments.
Last decade gave the much-needed diversity to the Indian economy. The market has become packed with multiple sectors that actually thrive with large investments. The businesses stopped struggling and actually growing with more investment. The government policies and worldwide economy have played important roles in this matter
and allowed more investment opportunities to become available.
The regular growth in the investment sector has improved the maturity in the market. When it comes to the PE / VC sector in India, the investments have been growing significantly. And that growth has led to this highest peak. The fundamentals have played an important role in terms of investment growth.
The investment objectives of the investors merged together with the opportunities that multiple sectors and government policies presented in the country. That convergence made investment objectives achievable even for large investments. Hence, the country
reached the highest peak of investment in 2017.
Among all the investment sectors, the technology and e-commerce dominated the investment in 2017. The technology sector achieved the maximum number of investments. On the other hand, e-commerce obtained high-quality investment value. As both the sectors are going to keep growing in the country, the road ahead of investment funding seems pretty bright.
Keep an eye on the growth and investment opportunities, as they will present wide opportunities this year.