India In Sight #106
Weekly updates on Indian private markets. Featuring sector reports on Housing Finance, EMS, Cables & Wires, Asset Management
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:
Secured Growth for Housing Finance companies by Bernstein
Asset management: SIP drives the structural shift by Investment Trust of India
India’s future arenas: Engines of growth and dynamism by McKinsey
India EMS: Sunrise Sector by JPMorgan
Cables & Wires sector report by JM Financial
The New Paradigm in Indian Housing by CBRE
KEY DEALS
Equity
[Exit] Manipal Health, a multispeciality hospital chain, acquired Sahyadri Hospitals, a Maharashtra focused hospital chain, for c.$750 million from Ontario Teachers Pension Plan (2.6x MOIC on exit). (July 10, 2025)
Arteria Tech, a SaaS and financing platform, raised c.$12 million from ICICI Ventures, the investment arm of ICICI Bank. (July 10, 2025)
Credit Wise Capital, a vehicle and MSME focused NBFC, raised c.$24 million from Trident Growth Partners, a growth-stage PE firm. (July 08, 2025)
Khetika, a clean-label food company, raised c.$18 million in a new funding round led by the Narotam Sekhsaria Family Office and Anicut Capital. (July 07, 2025)
Infinity Fincorp, an MSME focused NBFC, raised c.$230 million from Partners Group (majority stake acquisition) with participation from existing shareholder, Jungle Ventures. (July 10, 2025)
[Expected] PC Jewellers, a jewellery retailer, is looking to raise c.$60 million in equity from its promoters and Capital Ventures to prepay its loan. (July 10, 2025)
[Expected] Zepto, an Indian grocery and food delivery startup, is looking to raise c.$450–$500 million in a new funding round at a valuation of c.$7 billion. (July 09, 2025)
[Expected] Kedaara Capital to acquire a stake in Porter, a on-demand logistics-turned-unicorn. The exact financial details were not disclosed. (July 08, 2025)
[Expected] Square Yards, a proptech platform, is looking to raise c.$235 million through an IPO at a valuation of c.$1.5–2 billion. (July 07, 2025)
Credit
Varthana Finance, an education-focused NBFC, raised c.$19 million in debt funding from BlueEarth Capital, ResponsAbility, and Franklin Templeton via ECBs and NCDs. (July 09, 2025)
KEY FUNDS AND FUNDRAISES
NIIF (National Investment and Infrastructure Fund), a quasi-sovereign infra fund, to mark its first close for its Private Markets Fund (PMF II) at c.$700-million. NIIF is also launching its Master Fund II with a target corpus of c.$4 billion. (July 10, 2025)
IndiGo Ventures, the corporate VC arm of IndiGo, marked the first close of its maiden fund at c.$50 million. The fund has a target corpus of c.$70 million. (July 09, 2025)
MARKET INSIGHTS & RESEARCH
Reports
Bernstein’s report on ‘Housing finance companies’ highlights a sustained structural upcycle. Housing credit is expected to grow at a 12–14% CAGR over the next five years, supported by rising homeownership and favorable interest rates. Large banks are gaining market share with strong balance sheets and digital distribution, while NBFCs face rising cost pressures and competition.
The Investment Trust of India’s report on ‘Asset management’ highlights India’s AMC industry as a high-growth structural story, with mutual fund AUM expected to grow at ~17% CAGR, reaching c.$1.2T by FY30. The shift from physical to financial savings, regulatory support, and deepening SIP culture are driving this growth. Digital platforms and fintechs are further disrupting distribution.
McKinsey’s report on ‘India’s engines of future growth’ identifies 11 high-potential sectors that could add $2.5–3T to India’s GDP by 2030, including electronics, green energy, e-commerce, and digital infra. These arenas could attract significant investment. India’s demographic dividend, rising consumption, and digital backbone are the critical enablers, which need targeted policy support and private participation.
JP Morgan’s report on ‘India EMS: Sunrise Sector’ highlights EMS as a “Sunrise Sector” with ~25% revenue CAGR potential through FY28, driven by tailwinds like import substitution, PLI schemes, and global supply chain diversification. The sector is expected to reach $100B+ by FY28, with increasing contribution from high-margin segments like IoT, wearables, and automotive electronics.
JM Financial’s report on ‘Cables & Wires’ projects 11–13% revenue CAGR over FY25–30, driven by rising demand from housing, infra, power capex, and exports. The sector is expected to grow by 2x+ by 2030, with increasing organized play (share rising to 82% by FY30). Key drivers include real estate upcycle, renewable energy, and industrial automation.
CBRE’s report on ‘The New Paradigm in Indian Housing’ highlights 10 key trends - the market is witnessing a structural shift driven by rising home ownership sentiment, regulatory reforms, and increasing demand in Tier II and III cities. Key insights include the growing preference for larger homes (50% new launches are 3BHK+), a surge in gated community developments, and the rise of branded residences and plotted developments.
Carnelian’s report on ‘Insider selling’ presents a counter-thesis and challenges the blanket perception that insider or promoter selling is a red flag. ~70% of companies with insider sales in the past decade delivered positive stock returns, with ~15% achieving 30%+ CAGR. Promoter sales often stem from valid reasons like diversification, regulatory compliance, succession planning, or personal needs.
Check out our 100th Edition Special for the top reports so far in 2025!
Articles
India’s startup exit landscape saw a record-breaking 2024, with IPOs driving 68% of all PE/VC exits and generating $15.5B in value. However, strategic M&A activity is gaining ground in 2025, with $2.5B in deals in just five months. Read more.
India’s IPO boom could add $2–3T in market value over the next decade. IPOs have already raised ~$6B in 2025, including HDB Financial’s $1.5B listing, with several large offerings like ICICI Prudential AMC in the pipeline. Read more.
India has lagged behind in climate tech with innovation and funding remaining weak outside EVs, hindered by low consumer demand, lack of regulatory push, and a "free-rider" mindset among both companies and nations. Read more.
India’s AI landscape in 2025 is transitioning from experimentation to scaled deployment, driven by its rich digital public infrastructure, expanding rural connectivity, and an increasingly AI-native workforce. Despite being 12th globally in AI funding, India ranks among the top 4 ecosystems in research output and startup activity. Read more.
India’s data centre (DC) capacity is projected to double to 2.4 GW by FY28, with annual additions accelerating to 300–350 MW, driven by rising data consumption, AI adoption, and cloud demand. Total investment pipeline is estimated at $18-23B. Read more.
Overseas investors repatriated a record c.$98B from India in FY25, up from $88B in FY24, driven by increased FDI inflows and debt investments. RBI data also shows higher returns from forex reserves and rising outbound investments by Indian firms. Read more.
Fixed-income investments provide Gen-Z investors with stability and predictable returns, making them a valuable part of a diversified portfolio. Experts recommend using mutual funds, aligning investments with interest rate cycles, and adopting SIPs for disciplined growth. Read more.
KPIs
India’s economic growth may be stabilizing, supported by conducive interest rates, ample liquidity, easing crude oil prices, and expectations of a normal monsoon. Although global trade uncertainties remain a concern, factors like robust government expenditure, rising private investment, and a recovering real estate sector are likely to fuel medium-term growth.
Indian businesses stand to unlock c.$10T in economic value by 2035 by adopting domain-led models that solve real human and industrial challenges. This shift promotes cross-sector innovation in fields like manufacturing, construction, and healthcare.
The concerns of a slowdown in private capex might not hold as investments remain active across sectors. Healthy corporate balance sheets, low leverage, and strong access to capital markets are key drivers supporting the ongoing private investment cycle.
WEEKLY MARKET UPDATE (w/c July 07, 2025)
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