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Venture Capitalists Eye Indian Startup Scene With Faith and Funding!

Chiratae Ventures' first growth fund's final closure and Multiples Alternate's $640 million fundraising are indicators of the burgeoning private equity market in India.

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Shubham Gaurwal
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Startups with strong scalability and consistent cash flow don't face a shortage of funds. India's population of over 1.4 billion presents ample opportunities for businesses to address mass-scale problems and achieve scalability and cash flow. In the current Startup ecosystem, entrepreneurs have access to multiple funding options, with venture capitalists showing greater faith and understanding in investing in the Indian Startup scene. Chiratae Ventures' recent final close of its first growth fund at $112.4 million is a testament to this trend.

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Indian Private Equity Market Continues to Grow with Chiratae Ventures' $112.4M Growth Fund Close

As reported, the fund which had previously announced its first close in November 2020, is expected to invest in growth-stage rounds with a sector-agnostic approach. Chiratae Ventures is looking to invest in Startups that have market leadership, solve population-scale problems, and are close to breakeven and cash-flow positive, with investments ranging from $5-7.5 million, and up to $15 million on the higher end.

The firm's Founder and Chairman, Sudhir Sethi, believes that the firm's merit-based investment strategy will help identify Startups that have the potential to be successful. The firm has backed companies like Policybazaar, Curefit, and Firstcry, and has made upwards of 130 investments to date. The Chiratae Growth Fund has managed assets worth $1.1 billion and has made 48 exits, with eight unicorns and three IPOs in its portfolio.

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Indian Startups Flourish with Growing Private Equity Market

The Indian private equity market has been on the rise in recent years, with several major firms announcing new funds and raising capital. One such firm is Multiples Alternate, which recently raised $640 million for its fourth India-focused deployment platform. The fund aims to achieve a final closure of $1 billion, expected within the next four to five months. Multiples Alternate has invested in companies like Delhivery, RBL Bank, PVR Cinemas, Dream11, and Licious, and has expanded its sector focus on the green economy.

According to Renuka Ramnath, Managing Director at Multiples Alternate, the firm plans to make big-ticket investments via the co-investment model, with an investment target of over $1.5 billion in the next three to four years through fund IV. The firm's increased focus on the green economy aligns with India's push towards renewable energy, with the country aiming to achieve 450 GW of renewable energy capacity by 2030.

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Thriving Indian Startup Ecosystem

The growth in the Indian private equity market is being driven by several factors, including a growing middle class, a young and tech-savvy population, and a government that is focused on promoting entrepreneurship and innovation. India is also home to a large number of Startups that are looking to scale their operations, making it an attractive market for venture capital firms.

The Indian Startup ecosystem has been on the rise in recent years, with several unicorns emerging from the country. In fact, India was ranked third in the world for the number of unicorns it produced in 2020, after the US and China. With the Indian government's focus on promoting innovation and entrepreneurship and the growing availability of capital, the Indian Startup ecosystem is poised for further growth in the coming years.

Green Economy Presents New Investment Opportunities For Venture Capitalists in India

The final close of Chiratae Ventures' first growth fund and Multiples Alternate's $640 million fundraise are indications of the growing private equity market in India. With several major firms announcing new funds and raising capital, and the Indian government's focus on promoting innovation and entrepreneurship, the Indian Startup ecosystem is poised for further growth in the coming years. The increased focus on the green economy also presents new.

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