India In Sight #102
Weekly updates on Indian private markets. Featuring 'PE/VC Monthly Roundup - April 2025' by EY & IVCA
We are Ambassador Capital Partners, an investment firm with a focus on private credit and private equity.
In the spirit of making Indian private markets more accessible and transparent to global LPs and GPs, we have launched ‘India In Sight’ – consolidating and curating relevant information and insights from Indian private markets including trends, key deals, fundraises, KPIs, and top tier research
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Key reports in this edition:
PE/VC Monthly Roundup by EY IVCA
Catalysing value creation in Indian GCCs by PWC
Asia Pacific Hospitality Insights 2025 by Colliers
Rare earth magnets sector report by Nuvama
Implementing AI governance framework for central banks by PWC
KEY DEALS
Equity
Billionbrains Garage Ventures, the parent firm of Groww, raised c.$200 million in its Series F funding round led by GIC and ICONIQ Capital. (June 13, 2025)
Knest Manufacturers, a construction technology company, raised c.$35 million from Lighthouse Funds. (June 11, 2025)
FlexiLoans, an SME lending platform, raised c.$44 million in its Series C funding round led by Fundamentum, Accion Digital, Nuveen, BII and Maj Invest. (June 11, 2025)
[Exit] TA Associates, a private equity firm, sold its entire c.1.26% stake in AU Small Finance Bank for c.$85 million through an open market transaction. (June 10, 2025)
CRED, a fintech unicorn, raised c.$72 million in a fresh funding round from GIC, RTP Global and Sofina at an estimated down valuation of c.$3.5 billion (45% down vs c.$6.4 billion earlier) ahead of its potential IPO launch. (June 10, 2025)
Birla Estates, a wholly-owned subsidiary of Aditya Birla Real Estate, raised c.$50 million from International Finance Corporation (IFC) for two of its residential projects in Pune and Thane. (June 09, 2025)
[Expected] Snapmint, a buy now pay later startup, is looking to raise an estimated c.$40 million from General Atlantic (deal yet to be finalized). (June 11, 2025)
Rapido, a mobility firm now entering food delivery, to raise c.$15 million from Nexus Ventures as part of its extended Series E round at an estimated valuation of c.$1 billion. (June 10, 2025)
Mizuho Financial Group to acquire KKR’s stake in Avendus Capital for c.$700 million, taking its total ownership to c.70%. (June 09, 2025)
Credit
Zype, a fintech platform, secured c.$4 million in debt funding from Xponentia Capital via issuance of NCDs. (June 12, 2025)
MARKET INSIGHTS & RESEARCH
Reports
EY IVCA’s ‘PE/VC Monthly Roundup’ report shows that April 2025 saw $4.7B in PE/VC investments, down 6% YoY and 20% lower vs March 2025 while deal count fell by 4% YoY. The pure-play PE/VC investments in April 2025 reached c.$2B (down 51% YoY), offset by 175% YoY rise in investment in real estate and infra deals to $2.7B. PE/VC exits stood at $489M (12 deals), with secondary exits accounting for 45% of total exits.
PWC’s report on ‘Catalysing value creation in Indian GCCs’ highlights the evolving role of GCCs in India (~3,000 with 1.9M+ professionals), from cost centres into innovation-driven hubs, contributing value at a CAGR of ~10% during FY20–24 and are projected to deliver ~12% CAGR during FY25–29. Bridging certain operational gaps could unlock an additional 3–4% CAGR, pushing total value creation to ~15%.
Colliers report on ‘Asia Pacific Hospitality Insights 2025’ highlights a strong post-pandemic recovery in the region’s hotel sector, with RevPAR surpassing 2019 levels by 6.6% in Q1 2024. Key drivers are surging tourism, events, and easing visa norms. Hotel transaction volume in 2023 reached c.$10B, with Japan, Australia, and South Korea leading investment activity.
Nuvama’s sector update on ‘Rare earth magnets’ analyzes China’s export restrictions on rare earth elements (REEs), especially those used in rare earth magnets (REMs) critical for electric vehicles (EVs). China controls 90% of REE processing and 68% of REM production globally, creating potential supply shocks, with impact on Indian EVs as well.
PWC’s report on: ‘Implementing AI governance framework for central banks’ emphasises the urgent need for a structured, risk-sensitive approach to deploying AI in public financial institutions, proposing a governance framework—including AI tools, interdisciplinary committees, and monitoring—to ensure ethical and transparent AI use.
Check out our 100th Edition Special for the top reports so far in 2025!
Articles
SEBI proposes shifting co-investments from Portfolio Management Services (PMS) to new Co-Investment Vehicles (CIVs) under AIF Category I and II PE/VC funds. While this aims to streamline co-investment processes, it has sparked concerns over regulatory clarity, potential double taxation, and restricted capital access for startups. Read more. [Paywall]
India's ₹2,000 Cr IndiaAI mission has enlisted four domestic startups to develop foundational AI models and infrastructure via centralised compute support. Experts stress the need for a sovereign AI strategy to ensure India’s long-term competitiveness and technological independence. Read more. [Paywall]
India’s real estate and BFSI sectors have evolved from a funding-driven relationship to a strategic partnership, where financial institutions are both funders and users of high-quality real estate. Increased investments in major cities, rising adoption of REITs, and advanced financing tools are driving sectoral maturity, transparency, and resilience. Read more.
RBI’s latest repo rate cut (lowered to 5.5%), its lowest point in ~3 years—benefits the affordable and middle-income segments (homes in the ₹50–65 lakh and ₹70 lakh–₹1 crore range), boosting real estate sales and demand. Read more.
To enable a meaningful green transition, finance must be realigned with climate goals through systemic changes. India's draft climate finance taxonomy is a step forward, categorizing sectors under mitigation, adaptation, and transition pathways to guide impactful investments. Read more.
KPIs
Lending rates are expected to fall by ~30 bps after RBI’s recent rate cut. The immediate impact will be seen on loans linked to the external benchmark lending rate (EBLR), which make up ~60% of the loan book of All Scheduled Commercial Banks (ASCBs).
CareEdge Ratings highlights a decline in India’s household savings, which fell to 18.1% of GDP in FY24—marking the third consecutive year of reduction—while financial liabilities continued to rise. However, rural India shows signs of resilience with improving wage growth and recovering demand.
India’s private consumption showed slight slowdown as it grew at 5.9% in Q4FY25, while government consumption saw a decline. High-frequency indicators offer a mixed view—non-oil imports have improved, but auto sales and power demand remain sluggish.
WEEKLY MARKET UPDATE (w/c June 9, 2025)
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