India In Sight #91
Weekly updates on Indian private markets.
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Key reports in this edition:
M&A deals in tech services 2024 by EY
Pulse of Fintech report H2’2024 by KPMG
Impact of GenAI on the Indian healthcare ecosystem by PWC
Why India is best placed in Asia by Morgan Stanley
India construction cost trends 2024-25 by CBRE
Intergenerational trust in family business by PWC
KEY DEALS
Equity
Zolve, a cross-border neobanking startup, secured a commitment of c.$250 million in an equity and debt funding round led by Creaegis. Other investors include HSBC, SBI Investment, GMO Venture Partners, DG Daiwa Ventures, Accel, Lightspeed, Sparta Group, and DST Global. (March 13, 2025)
Rangsons Aerospace, an aerospace and defence technology manufacturing startup, raised c.$35 million from ValueQuest Investment Advisors to boost its operational capacity and explore growth opportunities. (March 13, 2025)
Blackstone acquired c.40% stake in Kolte-Patil Developers, a real estate developer, for c.$135 million. Blackstone will additionally make an offer to acquire 26% in the company from the public shareholders. (March 13, 2025)
Purple Style Labs, an omnichannel luxury fashion platform, secured c.$40 million in its Series E funding round led by SageOne Fund, Alchemy Ventures, Bajaj Holdings, and Minerva Ventures Fund. (March 13, 2025)
Temasek, Singapore’s sovereign wealth fund, acquired a minority stake of c.10% in Haldiram Snacks, a savoury snacks producer and retailer, for c.$1 billion, at an estimated valuation of c.$10 billion. (March 12, 2025)
Scimplify, a speciality chemical manufacturing startup, secured a commitment of c.$40 million in its Series B funding round co-led by Accel and Bertelsmann Investments. (March 12, 2025)
Infinite Uptime, a provider of predictive maintenance solutions for industrial machinery, secured c.$35 million in its Series C funding round led by Avataar Ventures. Other investors include StepStone Group, LGVP, Tiger Global and GSR Ventures. (March 11, 2025)
Singularity AMC, a growth equity firm, invested c.$57 million in Bhilwara Energy, a renewable energy company. (March 10, 2025)
[Expected] Vayana Network, a trade financing startup, received its NBFC license and is looking to raise c.$20 million. (March 13, 2025)
[Expected] Danfoss Group, a Denmark based conglomerate, plans to invest $125-150 million in local bets in India over the next three years. (March 11, 2025)
Credit
Jio Finance, a wholly-owned unit of Jio Financial Services, is raising c.$115 million in debt with its maiden commercial paper (CP) issuance at a coupon rate of 7.8%. (March 13, 2025)
InCred Finance, a fintech unicorn, raised c.$30 million in debt led by Neo Group, MAS Financial Services, CredAvenue Securities. (March 13, 2025)
CityMall, a grocery-focused social e-commerce platform, raised c.$6 million in debt from Trifecta and Alteria Capital. (March 12, 2025)
Sunsure Energy, a renewable energy company backed by Partners Group, is looking to raise c.$590 million in debt funding for growth and expansion. (March 11, 2025)
KEY FUNDS AND FUNDRAISES
Bessemer Venture Partners, a US-based VC fund, marked the final close of its second India focused fund with a target corpus of c.$350 million. (March 12, 2025)
MARKET INSIGHTS & RESEARCH
Reports
EY’s report on ’M&A deals in tech services’ highlights that in 2024, volume reached 850+ deals (highest in 4 years). Total value surged by 4x+ from $7B in 2023 to $32B in 2024, driven by strategic bets from listed IT firms and a resurgence of PE-led roll-ups, amidst attractive take-private opportunities. PE firms dominated mid-market consolidation, esp. in cloud, cybersecurity, and digital transformation.
KPMG’s ‘Pulse of Fintech report H2’24’ outlines that in 2024, global fintech investment dropped to ~$96B across ~4,640 deals, (lowest in 7 years). H2’24 saw a further decline to ~$44B (from ~$52 in H1), though Q4’24 rebounded with $26B, signaling cautious optimism for 2025. The Americas led with $31B, while EMEA and APAC saw $7B+ and $5B+ respectively. The payments sector remained dominant ($31B), followed by digital assets ($9B) and regtech ($7B).
PWC’s report on ‘Impact of GenAI on the Indian healthcare ecosystem’ shows that India's GenAI healthcare market ($1.2B) is growing at a 20%+ CAGR to reach $4.2B by 2030. GenAI is transforming care delivery, diagnostics, drug discovery, and medical education, enhancing efficiency, patient outcomes, and operational excellence.
Morgan Stanley’s note on ‘Why India is best placed in Asia’ highlights key drivers like low goods export dependency, strong services exports ($414B p.a., 10.8% of GDP), and policy support for domestic demand. Government capex (+10.1% YoY), easing inflation (down to 4.3%) and rebounding private consumption are driving growth.
CBRE’s report on ‘India construction cost trends’ underscores that in 2024-25, the cost landscape is complex with stabilizing material prices but rising labor costs. Core material inflation is moderating, yet labor shortages and wage hikes are pushing fit-out and construction costs higher. The office fit-out sector is witnessing a surge and construction tech is gaining traction.
PWC’s report on ‘Intergenerational trust in family business’ details that effective succession requires mentorship, delegation, and governance structures, including family councils, independent boards, and transparency. By fostering institutional trust, businesses can balance legacy preservation with innovation.
Minerva Capital’s sector note on ‘Jewellery’ outlines that the market is projected to grow at a 16% CAGR from FY24 to FY28, reaching $145B, with organized players expanding and gold hallmarking now mandatory. In FY23, India consumed 562 tons of gold (~$35B), contributing 26% to global jewelry demand. Custom duties on gold and silver have been cut from 15% to 6% to boost domestic value addition.
Articles
Blackstone announced its expansion into India's infra investing and credit businesses, citing India's resilience against US tariffs and strong macroeconomic growth. With ports, airports, and roads as key focus areas, the move builds on their high-return track record in India, reinforcing its favorable investment climate. Read more.
India’s wealthy investors, including UHNWIs and HNWIs, are increasingly diversifying their portfolios by combining traditional assets like equities, debt, and real estate with alternative investments such as startups, venture capital, and AIFs. This strategic allocation enhances risk management, returns optimization, and long-term wealth preservation. Read more.
India has traditionally been classified as an emerging market (EM), attracting global investors seeking high-growth opportunities. However, with its strong demographics, digital transformation, and rising market capitalization, experts suggest India is evolving into a standalone investment destination, akin to the U.S. and China, rather than just another EM play. Read more.
India saw a record-breaking surge in deal activity in February, with 226 M&A and PE deals worth $7B+ — the highest monthly volume in three years. M&A deals alone totaled ~$5B across 85 deals, with domestic deals making up 68% of volumes and 78% of value. Read more.
With lenders pulling back from small-ticket unsecured loans, fintechs are turning to Default Loss Guarantee (DLG) agreements to share default risk and revive credit flow. While this strategy brings lending partners back, it also raises costs and squeezes profitability, making it a short-term fix rather than a sustainable solution. As unsecured lending slows, fintechs are shifting towards secured loans like loans against mutual funds. Read more.
India climbed to 39th place in the Global Innovation Index (GII) 2024, but its academia-industry R&D collaboration ranking plunged to 86th from 23rd in 2019, posing a risk to its innovation trajectory. R&D spending is at just 0.6% of GDP (vs 3.5% in U.S. and 5.4% in Israel) and government funding for partnerships are drying up. Read more.
India should focus on cost-effective AI development rather than spending billions on AI R&D. Building sector-specific AI applications (e.g., finance, healthcare, manufacturing) on vertical LLMs could be better strategy instead of competing with ChatGPT and DeepSeek. Government should invest $1B+ annually in AI, robotics, and other advanced sectors to drive long-term innovation. Read more.
India is emerging as a global AI hub, driven by its 420K+ AI professionals, high skill penetration, and cost-effective AI outsourcing. With Microsoft investing $3B in AI infrastructure and homegrown LLMs like Krutrim and BharatGPT, India is attracting global AI investments. The AI data solutions market is expected to hit $23B by 2028, reinforcing India's strategic role. Read more.
India’s ports have improved significantly. Despite port capacity doubling since 2014, challenges remain in last-mile connectivity, process inefficiencis, and reliance on foreign transshipment hubs (losing $200M+ annually). Initiatives like Sagarmala, AI-driven port automation, and transshipment hubs aim to position India as a global shipping hub. Read more.
India's cement industry faces EBITDA pressure, with margins dropping 25-30% in recent quarters, prompting a shift toward cost optimization strategies. Key focus areas include fuel procurement, logistics, and manpower costs. With new cost levers in energy, logistics, and workforce efficiency, cement players aim to boost profitability amid rising input costs and price constraints. Read more.
KPIs
India stands to benefit from the global shift to net zero, but weak climate policies could heighten economic and financial risks. Central banks are increasingly focusing on climate change's impact.
India is set to become the world’s third-largest economy by 2028, with GDP expanding from $3.5T in 2023 to $5.7T, surpassing Germany. This growth is driven by macroeconomic stability and infrastructure advancements.
The RBI reported a slowdown in net sales growth of select FDI companies to 9.3% in 2023-24, down from 20.3% the previous year, due to post-pandemic demand normalization. However, cost rationalization boosted operating profits by 20.4%, despite lower sales growth.
In 2024, China and India outperformed global trade norms, driven by developing economies and strong services trade. However, UNCTAD warns of rising protectionism and trade imbalances, amidst geopolitical tensions.
WEEKLY MARKET UPDATE (w/c March 10, 2025)
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