India In Sight #85
Weekly updates on Indian private markets. Special edition featuring key takeaways from Union Budget 2025-2026
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Key reports in this edition:
Summary of Union Budget 2025-26 (Government of India)
Highlights of Union Budget 2025-26 (Ministry of Finance)
Budget 2025-2026 Overview (Anand Rathi)
Union Budget 2025-26 Analysis (PRS Legislative Research)
The unmissable Asia healthcare opportunity (BCG)
Healthtech’s rebound (Entrackr)
India Market Monitor Q4 2024 (CBRE)
KEY DEALS
Equity
Captain Fresh, a seafood supplier startup, raised c.$30 million in a pre- IPO funding round led by Prosus Ventures, Accel, Tiger Global and other individual investors. (January 31, 2025)
Blueleaf Energy, a Singapore-based renewable energy platform owned by Macquarie, partnered with Jakson Green, a domestic new energy transition platform, for setting up three solar projects in India with 1 GW of combined capacity. The total debt and equity investment in the projects is estimated to be c.$400 million. (January 30, 2025)
SuperOps, a software provider for IT management services, raised c.$25 million in a Series C funding round led by March Capital, Addition and Z47. (January 30, 2025)
Leap, an overseas education focused guidance and financing platform, raised c.$65 million in its Series E funding round led by Apis Partners (80% primary, 20% secondary). Other investors include Owl Ventures, Jungle Ventures and Peak XV Partners. (January 29, 2025)
ASK Property Fund, the real estate focused fund of the Blackstone-backed ASK Group, invested c.$30 million in Satya Group, a real estate developer, for the development of a residential projects in Gurugram. (January 29, 2025)
Atomicwork, a B2B SaaS startup, raised c.$25 million in its Series A funding round led by Khosla Ventures and Z47 (f.ka. Matrix Partners India).
Other investors include Battery Ventures, Blume Ventures, and Peak XV Partners. (January 28, 2025)
InsuranceDekho, an insurtech startup, raised c.$15 million in its fresh funding round from Beams Fintech Fund, MUFG Bank, and C Investments. The fundraise is part of a larger $100 million round. (January 28, 2025)
[Expected] Slice, a consumer payments and credit company that merged with North East Small Finance Bank, is looking to raise c.$250 million to expand its digital banking operations. (January 27, 2025)
Credit
Aditya Birla Housing Finance, a housing lender, raised c.$100 million from IFC via NCDs. (January 29, 2025)
Union Bank of India is looking to raise c.$2.5 billion through issuance of long-term bonds to finance infrastructure and affordable housing. (January 29, 2025)
KEY FUNDS AND FUNDRAISES
Trifecta Capital, a venture debt firm, marked the first close of its fourth fund at $115 million. The funds has a target corpus of c.$230 million and plans to invest 100+ companies, in sectors like fintech, EVs, consumer products, logistics, new-age manufacturing, B2B services, and tech. (January 30, 2025)
Tanglin Venture Partners, a Singapore-based VC firm, launched its third fund with a target corpus of c.$250 million to invest in start ups in India and South East Asia. (January 28, 2025)
KEY TAKEAWAYS FROM UNION BUDGET 2025
Taxation & Fiscal Policy
New Income Tax Bill & KYC Registry: Focus on streamlining tax collection
Higher Tax Exemption Limit: Zero tax income limit raised to INR 1.2 million to boost consumption
Fiscal Consolidation: Debt-to-GDP target lowered to 60% from 85% in FY24.
Disinvestment Plans: c.$6 billion projected from asset monetization
Infrastructure & Capex
Lower Capex Target: Cut from c.$130 trillion to c.$127 trillion, signaling reduced government spending
Private Sector-Led Growth: Anticipated increase in private capex to support infrastructure development
Urban Infrastructure Boost: Continued focus on domestic manufacturing and value-added production
Sectoral Initiatives
Nuclear Energy Mission: Investment in alternative energy sources; nuclear power's share expected to triple by 2035
Deep Tech Fund: c.$2.3 billion allocated to boost R&D in manufacturing, pharma, and next-gen technology startups
National Geospatial Mission: Development of geospatial infrastructure to modernize land records and urban planning
PM’s Gati Shakti Mission: Continued investment in infrastructure modernization.
Market & Investment Implications
Consumption Growth: Increased disposable income to benefit FMCG and retail sectors
Public Market Impact: Limited immediate impact; valuations remain key
Bottom-Up Investing Approach: Investors advised to focus on strong fundamentals
General Observations
The budget does not drastically impact the long-term India growth story
Stock market reactions are more influenced by valuations than budget announcements
The budget emphasizes fiscal responsibility while maintaining infrastructure investments
Private sector-led growth is expected to play a crucial role in economic expansion
Conclusion
The budget focuses on fiscal prudence while fostering infrastructure and technology investments.
No major freebie announcements, keeping spending disciplined.
The onus now shifts to the private sector to drive economic growth, with select companies benefiting from sectoral tailwinds.
Key Sources and articles
Summary of Union Budget 2025-26 (Government of India)
Highlights of Union Budget 2025-26 (Ministry of Finance)
Budget 2025-2026 Overview (Anand Rathi)
Union Budget 2025-26 Analysis (PRS Legislative Research)
India’s GCC framework in Budget 2025 (MoneyControl)
Budget and Its Two Pillars: Private investment and middle class (MoneyControl)
Govt to introduce light-touch regulatory framework for Ease Of Doing Business (Inc42)
India’s commitment to energy security and clean energy growth (MoneyControl)
MARKET INSIGHTS & RESEARCH
Reports
BCG’s report on ‘The unmissable Asia healthcare opportunity’ unpacks the APAC healthcare market which is set to hit $5T (40% of global sector growth). India’s CDMO market is expected to double to $14B by 2028, benefiting from the China+1 shift. With AI, biotech, telemedicine surging along with increasing FDI, Asia is primed for healthcare disruption.
Entrackr’s report on ‘Healthtech’s rebound’ highlights that with 10K+ startups and a 120%+ CAGR since 2016, the healthtech market is projected to reach $50B by 2033, driven by telemedicine (31% CAGR) and e-pharmacy (44% CAGR). Funding rebounded to $1.1B+ in 2024. M&A activity increased with 12 deals, and as healthtech investments and innovations are set to accelerate.
CBRE’s ‘India Market Monitor Q4 2024’ shows that India's office market hit a record in Q4 2024, with 22.2M sq. ft. leased, driving total annual absorption to 79M sq. ft., a 16% YoY growth. Rental prices rose 2-9% across key cities, fueled by demand for premium office spaces. Strong demand in technology, BFSI, and flexible spaces will sustain momentum into 2025.
KPIs
India’s retail inflation is expected to gradually align with the 4% target, supported by falling global commodity prices and supply-side improvements.
Global roles in India's GCCs are projected to quadruple to 30,000 by 2030, as India transitions from a low-cost hub to an innovation powerhouse.
Economic Survey highlights growth in non-fossil fuel power, global services share, private spending, and small farmer credit. Over the past decade, India also saw expansion in highways, increased women's patent filings, and improved rural power supply, reflecting sustained economic progress.
WEEKLY MARKET UPDATE (w/c January 27, 2025)
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