Looking to invest in AI, cybersecurity, & Bharat'
Business Standard|July 08, 2024
At a time when the investment scenario has been challenging since 2021, financing conditions have started improving with larger funding rounds becoming more common, says PRAYANK SWAROOP, partner at venture-capital firm Accel. In a video interview with Peerzada Abrar, Swaroop says Accel is betting big to invest in areas such as consumer brands, fintech, software-as-a-service, artificial intelligence (AI), cybersecurity, and Bharat.
Peerzada Abrar
Looking to invest in AI, cybersecurity, & Bharat'

How do you see the investment scenario amid macroeconomic uncertainty?

It has been challenging since 2021, particularly in India during 2022 and early 2023. However, during the past 12 months, conditions have started to improve with larger funding rounds becoming more common. Early-stage activity remains robust, with firms like Accel being particularly active. Indian public markets have absorbed several tech initial public offerings (IPOs), and more tech companies are expected to go the next one year.

What kind of companies are going for IPOS?

The IPO landscape is favouring consumer platform companies, especially those with well-known brands, because they are easier for the market to understand and evaluate. These companies can leverage strong consumer recognition to facilitate their public offerings. While large software or B2B (business to business) companies in India haven't yet taken this step, it's anticipated that they will eventually take it. Fintech firms, particularly in insurance, too are gearing up for IPOs. The trend shows consumer brands will likely go public first due to their digital adoption and market penetration, with B2B marketplaces and other fintechs following suit in the coming quarters. A lot of companies are preparing for IPOs. Many others are either raising pre-IPO rounds or planning to go public.

How do you see the trend of startups flipping back to India from countries such as Singapore and the US?

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