Venture capital and equity (VC/PE) funds are likely to take up to two-years to regain their 2005-07 level, when fund-flow was at an all-time high, an industry official said.
“The 2005-07 period was a great one as companies received maximum inflows through VC/PE funding. I think we will take another two-years to reach that level,” Indian Venture Capital and Private Equity Association President, Mahendra Swaroop, told.
With India's economy bouncing back and the country on track to achieve an eight per cent GDP growth, interest in the Indian market is re-emerging, Swaroop said.
“Earlier, the destinations were either China or India. But now with China slightly over-heated, greater opportunities lie in India,” he said.
The VC/PE fund inflow into the country in the last five and half years has been to the tune of over USD 44.8-billion with investments flowing into around 13,000 domestic companies, he said.
Rooting for simplifying rules governing such funds to make them attractive to investors, Swaroop called for a different regulatory framework to govern this kind of capital.
“The market regulator, Sebi, has to start looking at a different regulatory framework for this kind of capital, which is essentially risk capital,” he said.
Source: Economic Times