India In Sight #90
Weekly updates on Indian private markets. Featuring reports on ' Contract Research, Development, and Manufacturing Organizations (CRDMO)' and 'Auto Components industry' by BCG
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Key reports in this edition:
Indian startups - February 2025 report by Entrackr’s
Indian CRDMO sector report by BCG & IPSO
Food and food processing industry report by Brickwork
Export Growth for the Auto Component Industry by BCG & ACMA
GCCs transforming India's office landscape by CBRE
The mutual funds route to Viksit Bharat @2047 by PWC
Aviation leasing and financing ecosystem at GIFT IFSC by KPMG
Value-based healthcare (VBHC) in India by PWC
KEY DEALS
Equity
Swish, a 10-minute food delivery startup, raised c.$14 million in its Series A funding round, led by Hara Global Capital and Accel India. (March 08, 2025)
Truemeds, a telehealth platform, raised c.$44 million in its Series C funding round led by Accel India. Other investors include WestBridge and Info Edge. (March 06, 2025)
Darwinbox, an HRTech startup, raised c.$140 million in a funding round led by Partners Group and KKR. Other investor include Gravity Holdings. (March 05, 2025)
Collins Aerospace, an aeronautical and defence equipment maker, invested c.$25 million for a new engineering development and test centre in Bengaluru, its largest facility outside the US. (March 05, 2025)
Veira Electronics, a contract smart TV manufacturer, raised c.$15 million from Bharat Value Fund in its pre-IPO placement round. (March 04, 2025)
InsuranceDekho, an insurtech company, raised c.$70 million in a funding round co-led by Beams Fintech Fund, MUFG and BNP Paribas. (March 04, 2025)
[Expected] Lohum, a battery tech startup, to raise c.$100 million in its series C round and another c.$100 million in pre-IPO placement round with the IPO targeted in 2027. (March 07, 2025)
[Expected] Knowledge Realty Trust, a REIT sponsored by Sattva Developers and Blackstone, is looking to raise c.$712 million through IPO. (March 07, 2025)
[Expected] Smallest.ai, an AI startup working in voice model, is looking to raise c.$10-15 million at an estimated valuation of c.$50-60 million from 3one4 Capital and Better Capital. (March 06, 2025)
[Expected] Blackstone is looking to acquire South City Mall in Kolkata for an estimated c.$400 million. (March 05, 2025)
Credit
Leap Finance, an overseas education-focused edtech platform, raised c.$100 million in debt funding from HSBC to expand its lending portfolio. (March 05, 2025)
IIFL Finance is looking to raise c.$150 million by reissuing 2028 dollar-denominated bonds at a coupon rate of 8.75% . (March 04, 2025)
Greenko Group, a renewable energy company, is looking to raise c.$1 billion through an offshore bond sale to refinance its debt maturing in May 2025. (March 03, 2025)
KEY FUNDS AND FUNDRAISES
Gravity Holdings, a London-based private investment firm, launched its maiden fund to invest in Indian technology startups with a target corpus of c.$150 million. (March 06, 2025)
Prime Venture Partners, a domestic VC firm, launched its fifth fund with a target corpus of c.$100 million. (March 05, 2025)
MARKET INSIGHTS & RESEARCH
Reports
Entrackr’s ‘Indian startups - February 2025 report’ outlines that startup funding declined sharply, dropping 54% MoM to $802M across 98 deals, down from $1.76B in January. Growth-stage deals dominated with $633M across 24 transactions, while early-stage funding reached $183M across 63 rounds. Fintech ($184M) and e-commerce ($157M) were the top-funded sectors.
BCG & IPSO’s report on ‘Indian CRDMO sector’ values the sector at c.$3.5B (2–3% of the global market), poised to hit $22–25B by 2035. With a 15% CAGR from 2019–2024, India benefits from competitive cost advantages, faster project start times, and increasing global demand due to supply chain diversification from China. Talent development, regulatory efficiency, and capital access are critical.
Brickwork’s report on ‘Food and Food Processing Industry’ outlines that India’s food processing industry (32% of the total food market) has grown at 7%+ CAGR from 2015-2022, supported by 100% FDI policies and government initiatives and is expected to grow at ~10% CAGR. India leads in milk, eggs, and spice production, with agricultural exports reaching $48B+ in FY24, including $11B+ billion in rice exports.
BCG & ACMA’s report on ‘Auto components sector’ highlights that exports surged to ~$21B in FY24 (up 1.4x vs FY19), driven by global OEM demand, cost advantage and domestic growth. The sector, valued at $75B with an 8% CAGR since FY14, aims for $100B in exports - electronification (40-45% of car costs by 2030), electrification (5x BEV sales growth by 2035), and lightweighting (30% weight reduction by 2030).
CBRE’s report on ‘GCCs transforming India's office landscape’ shares that GCCs are driving commercial real estate demand and reshaping workspace strategies. India hosts over 1,500 GCCs, employing 1.66M people with $46B of addition to the economy (to reach $60 billion by 2026). Office space absorption by GCCs has surged, accounting for 50-55% of total leasing in major cities.
PWC’s report ‘The mutual funds route to Viksit Bharat @2047’ highlights that India’s MF industry has grown 175% in AUM over five years, reaching $760B+ in January 2025, with SIP contributions surging sixfold to $3.1B. Only ~4% of India's population invests in mutual funds (vs 50%+ in mature markets). The report envisions 15% retail penetration by 2047, expanding AUM to $33T.
KPMG report’s on ‘Aviation leasing and financing ecosystem at GIFT IFSC’ highlights that government aims to double operational airports to 300 by 2047, while airlines have placed record aircraft orders. With $210-255 billion in aircraft investments needed over two decades, GIFT IFSC offers tax incentives and regulatory support to develop India’s aircraft leasing ecosystem (60+ aircrafts leased as of Jan 2025).
PWC’s report on ‘Value-based healthcare (VBHC) in India’ outlines that India's transition to VBHC aims to improve patient outcomes while reducing costs, moving away from the traditional fee-for-service model. With out-of-pocket expenses (OOPE) at ~40% of total health costs, VBHC focuses on preventive care, efficiency, and data-driven decision-making.
Crisil’s report on ‘Indian economy’ recaps that: India's economy faces global turbulence amid US tariff hikes and geopolitical uncertainty, with exports contracting for three months and inflation easing to 4.3% in January. The RBI cut the repo rate by 25 bps, anticipating 6.5% GDP growth in FY26.
Articles
Corporate India is expected to raise $1.3-1.5T in debt between FY26 and FY30 for capital expenditure, working capital, and NBFC financing. ~$600B will be allocated to capex, with the infrastructure sector leading investments. Read more.
India is tackling its worst liquidity deficit with the RBI injecting $68B since late January. This is expected to create a liquidity surplus by March-end, improving interest rate transmission and supporting economic growth. Read more.
Amid a tech and VC downturn, many founders are moving on from their startups to launch new ventures, leveraging their experience and networks. AI and deeptech are emerging as key sectors, attracting entrepreneurs seeking fresh opportunities. [Paywall] Read more.
Wealth should not remain stagnant but be actively deployed for growth and progress. Experts advise investing capital wisely, not indulging in mere luxury. History shows that inheritance alone is fragile—without enterprise and purpose, fortunes can quickly fade. Read more.
KPIs
Credit growth still outpaces deposit growth, though both have slowed, with bank deposits at $2.6T and credit at $2.1T as of Feb. Sluggish deposit growth and stricter lending norms have contributed to this trend. Declining retail loans and NBFC lending have led credit rating firms to lower credit growth forecasts.
Rising inflation in India is driving up costs for essentials like nutritious food, health insurance, waste management, clean air and water, and skilled labor. Vegetable, fruit, and dairy prices are increasing, insurance premiums have risen, municipalities are imposing waste disposal fees, and a skilled labor shortage is pushing wages higher.
The RBI holds a record c.$78B in net short dollar positions, which may need to be rolled over to maintain rupee liquidity. Managing these maturities is critical, as unwinding could affect forex reserves ($640B and the credibility of spot reserves.
WEEKLY MARKET UPDATE (w/c March 03, 2025)
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