Investors Expect ‘Achche Din’ Under New Govt
VC, PE firms hope new govt to bring in stability, boost confidence
BISWARUP GOOPTU HARSIMRAN JULKA & MADHAV CHANCHANI
development was implemented,” said Nemesh Singh, CEO of Bhopal-based scheduling software firm Appointy which has annual revenue of about .` 3 crore. NRI investors are upbeat too. “NRIs form 10-15% of our investor base which is 350 strong. We expect more NRIs to invest in India which will result in at least a 20-25% rise in seed stage deals in next 18 months,” said Manish Singhal, CEO of Bangalorebased Lets Venture, a marketplace for investors and startups. Early and seed-stage deal market in India declined 14% last year. About $608 million worth of early stage investments took place last year, down from $709 million, a year before, as per EY. VCs however are concerned about BJP’s open opposition to FDI in multi-brand retail. “On FDI in e-commerce, BJP has not taken a clear taken stand. While they have promised to be investor friendly, we don’t know what that means, with their opposition to FDI in multi-brand retail,” said Rajesh Raju, MD at Kalaari Capital, which has invested in online retail firms such as Zivame, and Snapdeal. “With rupee strengthening, more dollar inflows can definitely be expected.” The rupee hit its 11-month high on Monday to .` 58.38 against dollar, due to robust foreign buying in domestic shares, ahead of the formation of the new Cabinet. Some investors feel that a lot of damage needs to be undone. “Hurdles that the bureaucrats and judiciary put in the way of entrepreneurs make them feel like beggars in front of them. What is happening to Flipkart founders by enforcement directorate is a live example,” said Rehan Yar Khan, founder, Orios Venture Partners .