India Data Insight (Year-End 2019)

Private investment in India reached a high of USD20.3b in 2019 despite macroeconomic headwinds

Private capital investors deployed record levels of capital in India in 2019 despite slowing economic growth and a continued crisis among non-banking financial companies (NBFCs). Venture capital (VC) fund managers were particularly active, completing 371 deals and accounting for USD4.4 billion in capital invested. Record-high investment activity was driven by the volume of funds raised in prior years that provided firms with ample dry powder. In addition, growing demand for technology solutions among India’s SMEs has created an exciting crop of startups. Khatabook, which digitizes business records, raised USD25 million from GGV Capital in 2019, and NowFloats, which helps SMEs set up websites, secured USD3.5 million from an Iron Pillar-led consortium before Reliance Industries acquired an 85% stake for USD20 million.