India In Sight #109
Weekly updates on Indian private markets. Featuring sector reports on FMCG contract manufacturing, Aerospace manufacturing, and railway freight portfolio diversification.
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:
India’s FMCG contract manufacturing by KPMG
Railway freight portfolio diversification in India by PWC
Indian Aerospace Manufacturing sector report by ValueQuest
Trump’s surprise 25% reciprocal tariffs on India by Goldman Sachs
Technology Trends Outlook 2025 by McKinsey
KEY DEALS
Equity
SAFE, a cybersecurity firm based in US and India, raised c.$70 million in its Series C funding round led by Avataar Ventures. Other investors include Susquehanna Asia VC, NextEquity Partners, and Prosperity7 Ventures. (July 31, 2025)
The Sleep Company, a sleep solution startup, to raise c.$12 million in its Series D funding round led by Saffron Investments, Carillon Investments and Infinity Partners. (July 31, 2025)
Zetwerk, an IPO-bound B2B e-commerce unicorn, raised c.$70 million from its promoters through a newly formed entity, Creovate Innovation. (July 30, 2025)
Jashvik Capital, a mid-market PE firm, invested c.$46 million in Marg ERP, an ERP and inventory management software. (July 30, 2025)
[Expected] KKR, TPG, Kedaara Capital, and Multiples PE are looking to acquire a majority stake in Sensa Core Medical Instrumentation, a medical device manufacturer at an estimated c.$300 million valuation. (July 29, 2025)
Credit
Omaxe, a real estate developer, raised c.$58 million in debt from Oaktree Capital, to repay debt and develop ongoing projects through issuance of NCDs. (July 29, 2025)
Navi Technologies, a financial services company, raised c.$20 million through debt funding from its founder and PhillipCapital. (July 28, 2025)
KEY FUNDS AND FUNDRAISES
Inflection Point Ventures, an angel investment platform, launched its maiden fund IPV International, with a target corpus of c.$110 million. (July 31, 2025)
Neo Asset Management, an asset management arm of Neo Group, marked the first close for its secondaries fund at c.$235 million. (July 31, 2025)
W Health Ventures launched its second fund with a target corpus of c.$70 million to invest in healthcare startups. (July 30, 2025)
MARKET INSIGHTS & RESEARCH
Reports
KPMG’s report on ‘India’s FMCG contract manufacturing’ outlines that the sector is undergoing a major shift, evolving from a fragmented, low-margin industry into a strategic, innovation-driven segment with public market potential—mirroring the success of Pharma CDMOs. Key growth drivers include the rise of D2C brands, increasing outsourcing by FMCG majors, export-oriented manufacturing with global compliance, and a shift toward premium and clean-label products.
PWC’s report on ‘Railway freight portfolio diversification in India’ highlights that Indian Railways moved 1,588 MT of freight in FY24, with plans to double this to 3,000 MT by 2027 and raise its modal share from ~27% to 45% by 2030. There is need to diversify into lightweight & high-growth sectors (10-17% p.a. growth but 10% freight share), such as FMCG, consumer durables, automobiles, and pharma vs heavy sectors.
ValueQuest’s report on ‘Indian Aerospace Manufacturing sector’ underscores strong rebound in sector with domestic passenger traffic reaching 134M in FY24 and projected to cross 150M in FY25. The sector saw a 21% YoY growth in passenger traffic and a 4% rise in average fares. International traffic surged by 23% YoY. Robust demand, expanding capacity, and improving yields point to a positive near-term outlook.
Goldman Sachs’s report on ‘Trump’s surprise 25% “reciprocal” tariffs on India’ highlights that the 25% “reciprocal” tariff on all imports could significantly impact Indian exports. India is among the top five Asian economies most exposed to such tariffs, particularly in sectors like auto parts, pharma, and textiles, thus adding to existing external risks for India, potentially affecting trade, investor sentiment, and stock markets.
KPMG’s report on ‘Building Public-Private synergies for heritage conservation’ outlines that heritage tourism contributes ~2.5% to tourism GDP and is projected to reach $57B by 2033 at 7% CAGR. The report emphasises adaptive reuse via PPPs—turning heritage sites into boutique hotels, cultural centres, and museums.
McKinsey’s report on ‘Technology Trends Outlook 2025’ identifies 15 key technology trends, with genAI, applied AI, and cloud computing in focus for innovation and investment momentum. Globally, $8T+ has been invested across these domains since 2020. Frontier technologies such as quantum computing and space tech are gaining traction, while digital trust and bioengineering are critical emerging priorities.
Articles
VC funding for Indian startups in July 2025 fell to a year-low of $621M, down 42% YoY and 41% from June, largely due to the absence of large-value deals (none over $50M). While the number of deals rose to 102, the low ticket sizes reflect investor caution amid macro uncertainty and evolving AI trends. Read more.
SEBI is proposing stricter norms for appointing independent third-party reviewers of green debt securities to align with ESG bond standards. The move aims to strengthen reviewer independence, mitigate conflicts of interest, and enhance transparency and credibility through better certifications. Read more.
India’s steel industry is poised for significant growth, with consumption expected to triple by 2050, making green steel a strategic priority. Rising demand is fueled by decarbonization goals, emerging tech, and supportive policies. Embracing green steel will support India’s climate goals. Read more.
India's stock market is under pressure as new US tariffs—the highest in Asia—and scrutiny over Russian energy imports add to concerns about slowing growth and weak corporate earnings. These factors are prompting FIIs to exit in favor of more appealing markets like Hong Kong and South Korea. Read more.
India's rural economy is booming, driven by improved agricultural output, government support, and rising cash flows. Rural consumption is outpacing urban demand, unemployment is falling, and tractor sales are set to hit record highs. FMCG growth and small manufacturer expansion highlight the rural sector's growing contribution to GDP. Read more.
The growing share of BRICS+ in global GDP, trade, and population signals a shift toward a more multilateral global economic order. By 2024, BRICS+ merchandise exports rival those of the G7, reflecting this shift. The New Development Bank is poised to enhance infrastructure financing across BRICS+. Read more.
KPIs
RBI Monetary Policy Committee (MPC) has kept key interest rates unchanged at 5.50% and the real GDP growth for FY26 is projected at 6.5%. RBI Governor said that measures are being taken to support growth amid geopolitical tensions.
India's GST collections rose 7.5% YoY to $23.0B in July 2025, up from $21.7B in June. This follows April’s record-high collection of $27.8B, reflecting continued momentum in tax revenue growth.
India's fiscal deficit widened to $33.0B in Q1 FY26, driven by a sharp rise in capital and revenue spending. While net tax revenues declined, non-tax revenues rose significantly due to a central bank dividend. The June deficit reversed the earlier surplus, reflecting increased fiscal pressure.
WEEKLY MARKET UPDATE (w/c August 01, 2025)
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