India In Sight #98
Weekly updates on Indian private markets. Featuring reports on 'India - UK Free Trade Agreement'.
We are Ambassador Capital Partners, an investment firm with a focus on private credit and private equity.
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Key reports in this edition:
Intelligent Manufacturing - Creating value through AI by KPMG
Indian Cold Chain Industry sector report by Ambit
Indian Textiles sector report by Systematix
India – U.K. Free Trade Agreement by PL Capital
US, China or India - Which market leads the next growth wave by Ionic Wealth
KEY DEALS
Equity
[Exit] Peak XV Partners sold its share in Porter, a hyperlocal logistics startup, for an estimated c.$140 million. With an initial investment of c.$14 million, the exit marks a ~11x MOIC return for Peak XV. (May 15, 2025)
Nobel Hygiene, a disposable personal hygiene company, raised c.$20 million from Neo Asset Management, an asset management arm of Neo Group, in a mix of primary and secondary transactions. (May 15, 2025)
GIC (Viggo Investment) is targeting to acquire c.2.2% stake in Groww, a fintech unicorn, in its ongoing $200 million fundraising round, at an estimated valuation of c.$6-7 billion. (May 15, 2025)
Hocco, a premium ice cream brand, raised c.$10 million in its $20 million Series B round co-led by Chona Family Office and Sauce VC. (May 15, 2025)
1-India Family Mart, a value retail chain, raised c.$12 million in its Series D funding round from Gulf Islamic Investments, Carpediem Capital Partners, Capri Global Holdings, and promoter JP Shukla. (May 15, 2025)
Credit
Shapoorji Pallonji Group raised c.$3.3 billion via 3 year high-yielding NCDs at ~20% yield. (May 17, 2025)
Bluestone, an omnichannel jewellery retailer, raised c.$5 million in debt funding led by BlackSoil and Caspian Impact Investments ahead of its IPO. (May 14, 2025)
KEY FUNDS AND FUNDRAISES
Bat VC, a US based VC firm, launched its second fund with a target corpus of c.$100 million to invest in early-stage deeptech and artificial intelligence startups. (May 16, 2025)
Kotak Mahindra AMC marked the first close of its maiden Credit Opportunities Fund at c.$140 million, targeting emerging corporates with strategic capital. The target corpus of the fund is $240 million. (May 15, 2025)
Kriscore Capital, a venture firm focusing on early-stage Indian tech startups, marked the first close of its maiden fund at c.$6 million. The fund has a target corpus of c.$12 million. (May 15, 2025)
Actis, a leading growth markets investor in sustainable infrastructure, marked the final close of its second Actis Long Life Infrastructure Fund (ALLIF2), with a target corpus of c.$1.7 billion for investing in growth markets operating infrastructure. (May 14, 2025)
PL Capital, the asset management arm of Prabhudas Lilladher, launched its maiden performing credit fund with a target corpus of c.$60 million. (May 13, 2025)
MARKET INSIGHTS & RESEARCH
Reports
KPMG’s report on ‘Intelligent Manufacturing’ outlines how AI is revolutionizing the sector by improving efficiency, agility, and sustainability. While 93% of leaders believe AI is a strategic necessity, adoption remains fragmented. Leaders are now moving toward agentic AI systems that enable autonomous, self-optimizing supply chains and production processes — 96% report efficiency gains and 62% report ROI >10%.
Ambit’s report on ‘Indian Cold Chain Industry’ values the sector at $24B (2023), which is projected to grow at an 11.4% CAGR to reach $65B by 2032. Despite critical importance to sectors like agriculture, food, and pharma, it remains fragmented and underpenetrated, with <5% of perishables transported in temperature-controlled environments. Growth is being fueled by rising demand for perishables, e-commerce, government support, and increasing tech adoption.
Systematix’s sector report on ‘Indian Textiles’ expects the India–UK Free Trade Agreement (FTA) to be a game-changer for India’s textile and apparel (T&A) industry by eliminating the 8–12% import duty in the UK, positioning Indian exports on par with global peers. The textile exports to UK grew at a 6% CAGR from $1.6B in 2020 to $2.0B in 2024 (70% apparel). The FTA opens up a potential $1B export opportunity.
PL Capital’s report on ‘India – U.K. Free Trade Agreement’ cites double bilateral trade to reach $120B by 2030, eliminating tariffs on 99% of Indian exports to the UK and reducing duties on 90% of UK exports to India. Sectors like textiles, engineering goods, gems and jewelry, and seafood stand to gain significantly—with Indian apparel alone expected to see a $100–150 million export upside in the near term.
Ionic Wealth’s report on ‘US, China or India- Which market leads the next growth wave’ highlights that global markets are navigating a 90-day trade reprieve amid mixed economic signals. India stands out with strong macro indicators—leading Asia in manufacturing PMI (Jan–Mar 2025), rising GST collections, and improving consumer sentiment. Key sectors to watch include pharma, chemicals, power, paints, and consumer services.
Articles
India met with US to push forward talks on the first phase of the India-U.S. Bilateral Trade Agreement. The discussions aim to conclude this initial phase by the fall, with a focus on improving market access and addressing non-tariff barriers. Read more.
RBI is considering a relaxation of investment rules for regulated entities in AIFs, easing earlier curbs introduced to enforce financial discipline. A draft proposal recommends limiting an individual RE’s investment to 10% of an AIF scheme’s corpus, while total RE investments in a scheme would be capped at 15%. Read more.
India is planning to tighten foreign investment regulations by introducing a new category for foreign-owned and controlled entities. The move aims to enhance oversight and prevent circumvention of FDI rules, potentially impacting sectors like e-commerce and pharma. Stricter norms may apply to share transfers and corporate restructurings under the revised framework. Read more.
The designated committee has advised that the Contingent Risk Buffer (CRB) be maintained between 5.5% and 6.5% of RBI's balance sheet. Additionally, the size of the RBI’s payout to the government is influenced by the income it generates from various domestic sources. Read more.
Deeptech—covering areas like AI, quantum computing, and biotechnology—is transforming industries ranging from healthcare to manufacturing. To accelerate its development, experts suggest the government explore initiatives such as a sovereign investment company, sector-focused venture funds, and deeptech venture studios. Read more.
Deeptech startups are disrupting future with innovations in 3D-printed rockets, semiconductors, and compact nuclear reactors. In a landscape dominated by fast-growth consumer tech, these ventures are focused on long-term, strategic impact. The broader challenge lies in India's need to develop a strong product mindset and invest more in R&D to create globally scaled tech products. Read more.
India’s $220B+ chemical industry stands at a critical juncture amid global supply chain realignments and US tariff hikes. While these shifts pose risks, they also open doors for India to gain market share and tap underexplored markets like Brazil, Germany, and China. Read more.
KPIs
ICRA estimates India’s Q4 GDP growth at 6.9%, bringing FY25 growth to 6.3%—slightly below the NSO’s 6.5% forecast. The slowdown is attributed to uneven trends in private consumption and investment, alongside uncertainty around tariffs. While service exports remain robust, merchandise exports declined during the quarter.
The UN has revised India’s 2025 growth forecast down to 6.3% from 6.6%, citing trade tensions and policy uncertainty. Despite this, India is expected to remain one of the fastest-growing major economies, supported by strong domestic demand, government spending, and rising exports, particularly in defence.
India needs a stronger domestic growth strategy to sustain India’s long-term economic momentum. The IT sector has been a key driver, but agriculture needs reforms, manufacturing has shown past strength, and construction remains volatile.
WEEKLY MARKET UPDATE (w/c May 12, 2025)
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