India Venture Capital Report 2024 – Exit Environment
Bain & Company (in collaboration with IVCA) recently released their 2024 India Venture Capital report.
Original article: https://www.bain.com/insights/india-venture-capital-report-2024/
India is a focus market for Nodem, providing all the raw ingredients for a successful secondary strategy. India has shown robust fundamentals - underscored by its significant consumption headroom, demonstrated fiscal and monetary discipline, geopolitical positioning, and expanding digital backbone - and has seen demonstratable exit markets and depth to its capital markets.
In 2023:
Exits surged almost 1.7x to reach $6.6 billion in 2023 as investors sought to provide Limited Partners liquidity in a high-interest-rate environment. Crossover funds contributed nearly 65% of overall exits across various modes, including public trades, secondaries, and strategic sales.
The majority of exits in 2023 were through public market sales, contributing to nearly 55% of the total exit value. Within this, non-IPO public trades dominated (approximately 95% share by value), experiencing a 3.5x surge led by Tiger Global and Softbank. This increase offset the decline in IPOs, which contracted close to 0.4x of 2022 exit value, as tech valuations remained depressed. Positive public market indicators in late 2023, such as the rise in public indexes and mounting IPO activity, foreshadow an impending ramp-up in IPOs.
Both secondary and strategic sales increased in value and held salience (approximately $1.9 billion to $3 billion over 2022–23) driven by large exits, e.g., Lenskart (to ADIA) and Flipkart (to Walmart).
Follow the link above for the full report.
Read more about the Indian exit environment here.
Disclosures
The views set forth herein are solely those of the authors and do not necessarily reflect the views of Nodem Capital. The information and views expressed are generic in nature and are not an offer to sell or the solicitation of an offer to purchase interests in any investments or services. Certain information contained in this article may constitute “forward-looking statements”. Any projections or other estimates contained herein, including estimates of returns or performance, are “forward-looking statements” and are based upon certain assumptions that may change. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. There can be no assurance that the forward-looking statements made herein will prove to be accurate, and issuance of such forward-looking statements should not be regarded as a representation by Nodem Capital, or any other person, that the objective and plans of Nodem Capital will be achieved.
This material does not constitute financial, investment, tax or legal advice (or an offer of such advisory services). It should not be viewed as advice or recommendations (or an offer of advisory services).
Certain information contained in this article (including certain forward-looking statements and information) has been obtained from published sources and/or prepared by other parties, which in certain cases has not been updated through the date hereof. While such sources are believed to be reliable, neither Nodem Capital nor any general partner affiliated with Nodem Capital or any of its respective directors, officers, employees, partners, members, shareholders, or their affiliates, nor any other person assumes any responsibility for the accuracy or completeness of such information.
