Venture capital investments in real estate declined 22% in the 12 months to June, but the sector still accounted for the largest proportion (12%) of such investments in India.
Total venture capital investments in the country saw a net increase of Rs8,183 crore in the year to June, to Rs20,310 crore ($5.03 billion).
These are some of the numbers released by stock market regulator Securities and Exchange Board of India (Sebi) on registered venture capital funds (VCF) and foreign venture capital investors (FVCI). Sebi-registered VCFs and FVCIs number 90 and 80 respectively, as listed on the regulator’s website and represent a portion of private equity (PE) investors currently active in the country. Informal industry estimates put the total number of PE firms, global and domestic, actively investing here currently, at 350.
Apart from real estate, investment in information technology also saw a decline of 7%, with most of the downturn happening in the last quarter. All other relevant sectors saw net growth. Investment in the telecommunications sector increased the most, by 690%.
Some VCFs that have recently registered with the regulator include Anand Rathi Realty Fund, India Value Fund, J.M. Financial India Fund, Kshitij Venture Capital Fund, Kotak Mahindra Venture Capital Fund and Reliance Venture Capital Fund.
Unlike VCFs, FVCIs are funds that are registered overseas, most often in Mauritius or Singapore, but invest in India in accordance with Sebi’s regulations. Foreign VC funds that are not registered with Sebi, invest here through the foreign direct investment route.
FVCIs that have recently signed up with the regulator include Blackstone FP Capital Partners (Mauritius) V Ltd, Sequoia Capital Mauritius and Helion Venture Partners.