We are Ambassador Capital Partners, an investment firm with a focus on private credit and private equity. Deeply embedded in the private markets ecosystem, ACP works with large global institutions to provide creative capital solutions for companies and asset managers.
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
Search, screen, filter, and save - all reports at one spot! Subscribe to India In Sight Library
Subscribe to receive the newsletter every week in your inbox! Stay informed, stay ahead!
Our next edition will be published on 12th November as we take a break next week on account of the festival season in India. Happy Diwali!
Key reports in this edition:
Consumer and Retail dealtracker Q3 2024 by Grant Thornton
Microfinance sector note by HDFC Securities
Decoding the fifth industrial revolution by PWC
Festive Auto Survey 2024 by Grant Thornton
Revenue Cycle Management for US Healthcare Leaders by Avendus
KEY DEALS
Equity
Healthify, a health and fitness platform, secured a commitment of c.$20 million in fresh capital from Khosla Ventures and Leapfrog Investments. (October 25, 2024)
Even Healthcare, a healthcare startup, raised c.$30 million in its Series A funding round led by Khosla Ventures. Others investors include Founders Fund, 8VC, and Lachy Groom. (October 23, 2024)
Zouk, a D2C bags and luggage brand, raised c.$10 million in its Series B funding round led by Aavishkaar Group. Other investors include Stellaris Venture Partners, Titan Capital, Sharrp Ventures, and the JJ Family. (October 23, 2024)
Kotak Real Estate Fund, a real estate PE arm of Kotak Alternates Asset Managers, invested c.$145 million in Elan Group, a real estate developer. The funds will be utilized to further strengthen its presence in Gurugram’s prime real estate market. (October 22, 2024)
Neysa, an AI acceleration cloud system provider, raised c.$30 million in Series A funding round led by NTT Venture Capital, Z47 (f.k.a. Matrix India), and Nexus Venture Partners. (October 22, 2024)
Other Credit Deals and Issuances
Udaan, a B2B e-commerce platform, raised c.$35 million in debt funding from Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital. (October 28, 2024)
SBI raised c.$600 million through issuance of tier-1 (AT-1) bonds at a coupon rate of 8%. (October 24, 2024)
Power Grid Corporation is looking to raise c.$600 million through issuance of bonds on private placement basis. (October 22, 2024)
[Expected] Abu Dhabi Investment Authority (ADIA), UAE’s sovereign wealth fund, is looking to invest c.$750 million in debt in GMR Group to refinance all external debt of GMR Enterprises. (October 23, 2024)
KEY FUNDS AND FUNDRAISES
Government of India launched a spacetech fund with a target corpus of c.$120 million to support India’s growing space technology startups. The fund will be managed by Indian National Space Promotion and Authorization Centre, India’s space regulator. (October 24, 2024)
Avaana Capital, a climate and sustainability focused fund, marked the final close of its latest climate-tech fund at c.$135 million, exceeding its initial target of c.$120 million. (October 24, 2024)
MARKET INSIGHTS & RESEARCH
Reports
Grant Thornton’s ‘Consumer and Retail dealtracker’ highlights that in Q3 2024, deal activity surged with 120+ deals worth c.$3.1 billion, marking the highest level of activity in past two years. M&A deals saw 31 deals worth c.$630 million while PE/VC invested c.$1.2 billion across 81 deals, with small ticket transactions (<$10 million) driving 70% of the activity. Consumer services, e-commerce and personal care segments contributed to 66% of the sector’s values.
HDFC Securities’ report on ‘Microfinance sector’ outlines that India’s microfinance industry, valued at $50 billion, has grown at a 20% CAGR over FY21-24, driven by a 13% increase in borrower count and 6% growth in average exposure. However, concerns around borrower over-leveraging pose risks. Credit costs are expected to rise in FY25-26, leading to muted loan growth.
PWC’s report on ‘Decoding the fifth industrial revolution’ highlights that 93% of senior executives aim to achieve 2x-3x profitable growth while prioritizing sustainability initiatives over the next 3-5 years. Industry 5.0, which emphasizes human-tech collaboration for sustainability and resilience, is expected to increase revenues by c.7% , with 95% prioritizing real-time inventory tracking to reduce excess stock.
Grant Thornton’s ‘Festive Auto Survey 2024’ offers insights into passenger vehicle buying trends in India. SUVs and UVs dominate with a 65% market share with rising interest in premium models. Auto dealers are moving towards “phygital” strategies. EV adoption is hindered by concerns over charging infrastructure, with hybrid vehicles gaining popularity, supported by tax exemptions in certain states.
Avendus’ note highlights that the US healthcare industry faces rising costs, labor shortages, and regulatory pressures, prompting a shift towards outsourcing non-clinical tasks like revenue cycle management (RCM) and adopting AI-driven tech to countries like India. Key trends include accelerated tech adoption across hospital functions, a deeper focus on payor behavior, and careful selection of EHR systems.
Articles
The Indian startup ecosystem is maturing, with exits through IPOs gaining momentum, and Indian family offices increasingly backing the next wave of startups. While foreign investors have historically reaped most of the benefits from these exits, domestic investors and family offices are now eager to claim their share. Fund managers suggest that local investors, including family offices, have a deeper understanding of the Indian market and are better equipped to offer patient capital. Read more. [Paywall]
India aims to double its economy to $7 trillion by 2030, focusing on infrastructure development, innovation, and inclusive growth. Research highlights the critical role of the private sector, the need for workforce upskilling, and the importance of strengthening international partnerships. These efforts are designed to avoid the middle-income trap and capitalize on global trade shifts. Read more.
India is drawing the attention of global fund managers as its bonds are included in international indexes. The vision for a developed India by 2047 has generated significant investor interest. The country plans to leverage foreign capital for infrastructure and private credit markets, while addressing regulatory and market challenges. Read more.
Market experts highlight India as a top investment destination, particularly in the tech and semiconductor sectors. Strong growth expected in hardware technology, driven by developments in India's semiconductor infrastructure. Young investors should conduct thorough research and focus on earnings growth, return on capital, and management quality in investment decisions. Read more.
The Unified Payments Interface (UPI) has significantly boosted India's digital transactions, growing from 4.4% in FY18 to 70% in FY24. India's digital transaction volumes now surpass those of its BRICS peers, including China and Brazil. Additionally, India has partnered with the UAE to expand UPI usage internationally. Read more.
KPIs
SBI research reveals a 74.2% reduction in income disparity for individuals earning up to INR500K annually between FY14 and FY23, attributing this improvement to government initiatives. It also highlights significant growth in ITR filings and an increase in direct tax collection, indicating improved tax compliance.
HSBC's flash PMI rose to 58.6 from 58.3 in October, indicating continued growth in India's business activity with boosted sales, production, and export orders driven by stronger manufacturing demand, leading to the fastest job creation since February 2006.
India's food inflation is projected to decline by the fourth quarter of FY25 due to better kharif crop arrivals and promising rabi season prospects, as per RBI. Despite potential weather risks, reservoir levels and sufficient cereal buffer stocks are favorable for maintaining food security.
The RBI's recent notification urging lenders to revise their gold loan practices may temporarily slow loan growth and increase asset quality stress. Issues highlighted include improper monitoring of LTV ratios and asset classification. Compliance may affect loan disbursements and taper growth for banks and NBFCs in the near term.
WEEKLY MARKET UPDATE (w/c October 21, 2024)
Thank you for reading India In Sight!
Read our other editions here.
Disclaimer:
The content provided on this platform contains references and links to external sources, including articles, reports, websites, images, or videos. We do not own or claim copyright over the content found in these external sources. The ownership and rights of the content belong to the original creators.
This post and the information presented are intended for informational purposes only. The views expressed herein are the author’s alone and do not constitute an offer to sell, or a recommendation to purchase, or a solicitation of an offer to buy, any security, nor a recommendation for any investment product or service. While certain information contained herein has been obtained from sources believed to be reliable, neither the author nor any of his employers or their affiliates have independently verified this information, and its accuracy and completeness cannot be guaranteed. Accordingly, no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, timeliness or completeness of this information. The author and affiliated persons and companies assume no liability for this information and no obligation to update the information or analysis contained herein in the future.