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Funding Tech Ventures: What seemed like a piece of crisp, butterscotch chip loaded cookie up until yesterday has suddenly turned into a soggy, limp biscuit.
And as a result, venture capital (VC) and private equity (PE) funds are inclining more towards infrastructure and real estate in recent times.
💡 Altogether, funds invested close to USD5.3 billion in Indian firms in May 2022, which is 42% higher than May 2021.
How did we get here
May had 109 deals as compared to 66 in the same period last year. The focus has firmly shifted to the infrastructure and real estate sectors, with investors putting in USD1.7 billion in the space.
This signals a change of direction from 2021, which was all about technology and e-commerce deals.
This May also saw 14 big-ticket deals (above USD100 million), collectively touching USD3.9 billion - including Apollo Global’s infusion of USD750 million into the Adani Group-run Mumbai Airport.
What lies ahead?
More real estate or infra-centric investor plays for sure.
⚠ However, risks remain - rupee depreciation, higher inflation, oil prices and a potential COVID-19 wave again.