India
India’s has strong core fundamentals will continue to attract PE investments. There is a huge potential growth with the technology sector representing the highest growth sector.
Private equity interest in India has been showing accelerated growth in recent years. So far in 2011, there has been $7.57 billion worth of investments through 274 deals, a 25 percent increase over the $6.07 billion of investments for the same period (Jan-August) last year. The average deal size also increased from $31.1 million to $33.1 million during the same period.
According to a recent survey conducted by Bain, the majority of the private equity investments have been in growth capital. Our strategy is to pursue the best investment opportunities within India and as a result we expect to mainly invest in growth companies.
We partner with incubators and business chambers in India and continuously monitor these companies that have strong revenue growth and the highest potential of success.
We also target and monitor early-stage companies with the help from university entrepreneurship programs. We recognize that the talent from the IITs (India Institutes of Technology) is a reliable source of innovative ideas and deal-flow. We intend to partner with such universities through sponsorships and by offering our resources to the entrepreneurs. In exchange we expect to gain access to India’s future promising new ideas and talent. By developing relationships with these entrepreneurs early on, we will be able to quickly secure an equity stake in standout companies and then help them scale and raise future rounds of funding.
As members of the Indian Private Equity and Venture Capital Association, we understand the importance of having local partners. This is why we have chosen advisors who are very experienced in navigating the India market and are highly successful in selecting winners. We intend to broaden and deepen our network in India with the opening of our office in Bangalore next year. This will help us get directly connected into the local entrepreneurs and investor community and develop our overall offerings to our limited partners and portfolio companies.
Target Sectors:
IT Services
- Total spending 2010: $7.4 billion
- Projected total 2013: $12 billion
Business Intelligence
- Total spending 2010: $65.4 million
- Projected total 2015: $124.7 million
Social Networking
- Total users 2010: $33 million
- Projected total users 2015: $72 million
Cloud Computing
- Total spending 2010: $534 million
- Projected total 2015: $3 billion