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Top 7 Trends in Venture Capital Market in India

22, November 2017 | Vikas Singh

Leveraging technology in the services economy

India is seeing increasing use of technology in various sectors of the economy. The services sector in India has begun leveraging technology to change the way it operates.This presents a great investment opportunity for venture capital funds to invest in India's services sector, which is striving for innovation through mobile, social, and cloud technologies to meet consumer needs by reducing costs and expanding business reach. Some of the major service-oriented industries in India include financial services, advertising/marketing, publishing, insurance, travel, logistics, healthcare, education, and government.

Indian companies expanding global reach presents an opportunity

Given increasing Internet penetration in India, B2C companies are aiming increasingly to reach out to a larger global consumer base t make their businesses more scalable. Thus, companies are no longer looking to confine their businesses to local boundaries. They are in fact willing to broaden their business horizons.  Therefore, companies are taking to social media and the Internet to reach out to a global consumer base. With middle-class category growing rapidly in many developing and emerging countries, demand for products is constantly increasing. This presents a great investment opportunity for VC funds. They can park funds in companies that aspire to go global, which increases their overall profitability.

India is slowly moving towards digital currencies

Digital currencies such as a Bitcoin are beginning to find their way in the Indian markets. They are promising to revolutionize the payments system over the coming decade. The technology behind bitcoins is the blockchain technology. This technology presents a great investment opportunity for VC funds to park their money. This technology is all set to revolutionize the whole digital payments industry. Given the demonetization initiative in India, demand for digital payments solutions has begun increasing rapidly.

Innovative hardware presents great opportunities

Consumers are increasingly game to use gadgets such as selfie sticks and smart heating vents. The new generation consumers in India, which is tech-savvy and social media friendly, connect instantly with these electronic gadgets.Thus, this presents a great investment opportunity for VC funds, especially because these products connect instantly with consumers on a larger scale, forcing investors to take note.India has seen growing demand for innovative hardware solutions in the past few years.Most Indian consumers prefer consuming brands such as Beats, JawBone, FitBit, and the GoPro camera, which are popular global electronic hardware products. The best part is that these products are a good combination of low-cost manufacturing and higher financial returns.

Real estate sector presents good opportunities

Real estate sector has been historically one of the most popular investment avenues in India. Moreover, with the option of investing in real estate funds through the SIP route, the demand for the sector is seeing more increase. Government's Make in India and Housing for All initiatives coupled with the thrust of the infrastructure sector promises to boost real estate demand. Thus, the Indian real estate industry provides a great investment option for VC funds. 

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