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Investment Trends To Watch In India

The trends that are slowly changing the investment rules in India are given below

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The investment landscape in India, in the last few years, have received tremendous support from the governing authorities and strong initiatives to either remodel or introduce new policies to help young startups and also to ease the flow of FII/FDI in the country are yielding results. The introduction of GST, one of the biggest implemented changes, was widely appreciated across business houses. Similarly, the launch of Make in India and Startup India movements received high appreciation and support from domestic manufacturers and even from international corners. As for investments, India received a total of $ 37.3 billion capital inflow in 2017-18 in comparison to $ 36.3 billion in the previous fiscal. 

India remains one of the most preferred investment destinations across the globe and the amount of innovation and development happening in the startup space is a challenging proposition for any investor. The latest trends in investment, from lessons learnt the hard way by investing into ideas that did not convert into profitable ventures or had a high rate of cash burn, and investible sectors are leaning heavily towards unexplored segments that have a larger reach and have a high ROI.    

The trends that are slowly changing the investment rules in India are: 

Smart Investments: The investment in the startup space in India has witnessed considerable slow down in the last few quarters but this de-growth can be attributed to investors now being more prudent in investing in early-age startups. Investors are now moving away from seed fund startups to investing into ventures that have some market capital.  

Selective investments: Investors, to an extent, are now playing safe and keen to invest in startups that have created recognizable market traction, have a reliable order book and are constantly innovating to develop improved products to keep pace with competition in terms of price, quality and extendable service.

IPO driven investments: Largely, PE driven investments are now driven towards proven business ventures that are now close to announcing IPO’s.  

Investor collaboration: Investor collaborations to create large corpus driven towards few ventures to build on strong equity has been a new trend. 

New Investment segments: Investments in newer technology like Blockchain, crypto currencies, e-sports, gaming and home automation have witnessed considerable growth in the last few quarters. Investors are open to investing in startups who are looking at previously unexplored segments like e-sports, gaming and home automation that have strong growth potentials due to the exponential growth of smartphones in the country.    

Indian Healthcare segment: Another prime area where investors are willing to invest is the underserved healthcare sector. Indian healthcare service providers are, historically, concentrated in the tier I & II locations, whereas, nearly 60% of our population resides beyond that without the availability of proper medical infrastructure and medical practitioners. Telemedicine, integrated medical devices and connected infrastructure to reach and serve the population holds strong growth promises and high ROI.   

Vernacular and NLP: This is one of the most promising trends that will bring about the entire country online as it focused on the non-English speaking population. India has nearly 90% of its population who are non English speaking and this trend will bring a majority of this population online. India being a multi-lingual country provides a vast opportunity for startups to develop deep tech in core NLP engines.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

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Nilesh Jain.

The author is passionate innovator, entrepreneur, investor and advisor

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