In­vestors Ex­pect ‘Achche Din’ Un­der New Govt

VC, PE firms hope new govt to bring in sta­bil­ity, boost con­fi­dence

The Economic Times - - Economy -


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 .

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