VCs in India are unable to successfully exit their investments due to the frozen IPO market, per the Financial Times.
The lack of exit prospects is a concern for VCs as many India-focused funds are nearing the end of their respective lifecycles. Lightbox Ventures partner Sandeep Murthy believes that several funds established in the middle of the last decade "have not achieved the liquidity they expected."
- Indian startups raised $25.7B in venture funding from foreign investors in 2022, down 40% from 2021's totals.
- Despite the pullback, the region has fared better compared to the funding drops seen in Southeast Asia and China, per Bain Capital.
- Foreign investors, including Tiger Global, SoftBank, and Sequoia, have halved their pace of investments.
- India's benchmark stock market index Sensex is up 2% this year; however, the values of tech startups have slumped 40% over the past year.
- B Capital founding partner Kabir Narang expects fundraising to pick up by the 2023 year-end or the beginning of 2024.
