India In Sight #88
Weekly updates on Indian private markets. Featuring 'India @2047: Transforming India into a tech-driven economy' report by Bain
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Key reports in this edition:
India @2047: Transforming India into a tech-driven economy by Bain
The GenAI adoption conundrum by BCG
The state of Uttar Pradesh startup ecosystem by Inc42
Indian States in Focus: Reports on Kerala and Tamil Nadu by CBRE
Food and nutritional security in India by KPMG
KEY DEALS
Equity
Brahma, an AI and content technology company created by the DNEG Group, acquired Metaphysic, a developer of AI content creation technologies. The post transaction valuation of Brahma is estimated at $1.4 billion. (February 22, 2025)
The Whole Truth, a clean-label health food brand, raised c.$16 million in its series C funding round led by Sofina Ventures. Other investors include Peak XV , Matrix Partners and Sauce.VC. (February 20, 2025)
Waterfield Advisors, a wealth advisory and multi-family office, raised c.$18 million in a funding round led by Jungle Ventures, a venture capital fund. (February 20, 2025)
360 ONE Asset, an asset manager, acquired c.15% stake in Bharti AXA Life Insurance, a life insurance company, to boost innovation and expand market reach. The exact financial details were not disclosed. (February 18, 2025)
Spyne, an automotive-focused visual technology startup, raised c.$16 million in its Series A funding round led by Vertex Ventures. Other investors include Accel, Storm Ventures, and Alteria Capital. (February 18, 2025)
Udaan, a B2B e-commerce firm, raised c.$75 million in equity in its Series G funding round led by M&G Plc and Lightspeed ahead of its IPO, at an estimated valuation of c.$1.5-1.8 billion. (February 17, 2025)
SKEGEN, a PE fund, signed an MoU for c.$58 million with Innovation for Defence Excellence (iDEX) to invest in defence sector in India. As part of this commitment, SKEGEN will invest c.$42 million in Sagar Defence Engineering and Zeus Numerix, defence focused portfolio companies of iDEX. (February 17, 2025)
Stelmec, an electrical power product manufacturer, secured c.$21 million in funding from Abakkus Asset Management’s maiden PE fund. (February 17, 2025)
Credit
Credit Fair, an NBFC, secured c.$5 million in debt from Symbiotics Investments, a market access platform for impact investing to expand its presence in the rooftop solar financing space. (February 19, 2025)
KEY FUNDS AND FUNDRAISES
Indian National Space Promotion and Authorization Centre (IN-SPACe), a government-backed space sector regulator and promoter, launched its maiden Technology Adoption Fund to nurture and support the growth of India’s space technology capabilities with a target corpus of c.$58 million. (February 19, 2025)
MARKET INSIGHTS & RESEARCH
Reports
Bain’s ‘India @2047’ report outlines that India is poised to become a developed economy by 2047, targeting a GDP of $23–$35T with 8%–10% annual growth, sectoral transformation, and tech advancements. Key sectors are electronics, energy, chemicals, automotive, and services. Challenges include infra deficits, a $3T investment need for climate goals, and digital divide issues. Success requires global partnerships, R&D investments, and advanced technologies like AI and green energy.
BCG’s report on ‘The GenAI adoption conundrum’ highlights India's potential as a global GenAI leader, given its $250B technology trade and 5M technology professionals. While 83% of developers recognize GenAI's productivity benefits, only 39% are proficient adopters, with GenZ adoption even lower at 31%. Agentic AI is set to drive autonomous decision-making, further revolutionizing the sector.
KPMG’s report on ‘Food and nutritional security in India’ highlights that ~13% of the population is chronically undernourished. Child malnutrition remains a concern, with 35.5% stunted, 18.7% wasted, and 67.1% of children anaemic. India's food security strategy includes c.$24B food subsidy, crop support programs (NFSM, PM-AASHA), and tech-driven initiatives like SMART-PDS for efficient food distribution.
Indian States in Focus
Inc42’s report on ‘The state of Uttar Pradesh startup ecosystem’ unpacks Uttar Pradesh’s startup ecosystem with 14,000+ startups and $8.6B+ in total funding since 2014. Fintech dominates, securing $4.7B, followed by ecommerce ($1.3B) and healthtech, edtech, and enterprise tech ($1.5B combined). The state has launched a $120M Fund-of-Funds to support early-stage startups.
CBRE’s report on ‘Kerala’ highlights Kerala’s economic growth (4%+ of GDP), with a per capita income 1.5x the national average. Key sectors include IT, healthcare, tourism, and manufacturing, with over c.$1.1B allocated for infra investment. Kerala also leads in sustainable tourism, with tourism revenues surpassing c.$4B crore in 2022. The state's Industrial Policy 2023 prioritizes 22 focus sectors attracting investor interest.
CBRE’s report on ‘Tamil Nadu’ highlights that the state is a top performer in automotive, electronics, aerospace, and renewable energy sectors, benefiting from dedicated policies. Tamil Nadu has a $300B+ economy, with a strong focus on logistics, fintech, and data centers. Attractive opportunities for investors in the state include startup ecosystem, infrastructure projects, logistics hubs and industrial corridors.
Articles
India’s next-generation family business owners are shifting from traditional business operations to managing family offices and investing in private equity. Experts note that successors are focusing on wealth management and high-growth, asset-light opportunities, challenging the traditional role of legacy businesses. Read more.
Private markets offer both equity and debt capital, flexible structures, and strategic partnerships for entrepreneurs. Over time, this alternative investment class has gained increased popularity as more investors and businesses recognize its potential for driving growth and creating value through innovative financing solutions. Read more.
Financial support, skill development, and industry collaboration are key to enabling smaller players in the defense sector to drive technological advancement and reduce dependence on imports, ultimately enhancing India’s strategic autonomy in defense. Read more.
The Union Budget 2025-26 increased the Textile Ministry’s allocation by 19% to $620M, aiming to boost India’s textile sector through key interventions. MSMEs benefit from enhanced credit access, export promotion, and Bharat Trade Net for easier global trade. PLI and other government allocations drive modernization and efficiency, making India’s textile sector more competitive. Read more.
Japan has invested $43B+ in India since 2000, making it the fifth-largest FDI contributor. Bilateral trade in 2023-24 reached c.$23B, with Japanese exports at $18B and Indian imports at $5B. India’s $1 trillion chemical industry target by 2040 presents vast opportunities for Japanese firms, especially in green chemicals, semiconductors, adhesives, and R&D. Read more.
KPIs
The Indian government plans to include ecommerce data in the Consumer Price Index to better capture consumer spending trends. Discussions are ongoing to ensure data integration without affecting business strategies or privacy. The revised CPI, with 2024 as the base year, will be released next year.
India is targeting c.$30-35T economy by 2047. The Central government’s collaboration with states to drive growth will be critical.
RBI sold $35B in foreign currencies during November and December 2024 to stabilize the rupee amid heightened dollar outflows. This led to a decline in India's forex reserves to $631B by Jan end, covering 10 months of imports.
Below is a quick snapshot of the services sector performance from the latest RBI bulletin February 2025.
WEEKLY MARKET UPDATE (w/c February 17, 2025)
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