Venture capital in India is booming.
As many as 40 new funds are targeting
India, most with U.S. backers. Not only have US venture capital firm taken a
strong interest in India lately, but so have venture capital firm from
Europe.
One fund, called Amaya Venture, has raised
$30 million so far from family offices, private investors and institutional
investors throughout Europe, the US, the Middle East and Asia. The target
for the fund is $150 million.
Over 50% of that fund is targeted for
Indian companies in technology, telecommunications and media. There will
also be a strong emphasis on automotive, retail, healthcare and finance
industries.
Interestingly, about one-third of the fund
will go to early stage companies.
Amaya’s general partners include the
president of the Indian Venture Capital Association, the co-founder of India’s
Band of Angels, and the former chief operating officer and founding member
of Ariadner Capital.
Amaya is hoping to be a gateway between New
Delhi and London, bridging the culture gap on both sides.
Creating links between Europe and India is
an interesting cultural challenge. India’s entrepreneurs are predominantly
family-owned and family-run businesses, often passed on from generation to
generation.
With Indian’s innate distrust of banks,
financing large scale enterprises has not been easy. The entry of venture
capitalists and angel investors will no doubt ease India’s transition into
the ever-growing global economy.
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