Sanjay Mehta, Founder & Partner, 100X.VC on Tuesday said that people are looking at start-ups and new-age technology firms with a different lens in India. Speaking at the BT Market Today Summit, Mehta cited that reality show, for instance, Shark Tank India is being watched like IPL (Indian Premier League). He also mentioned that electric vehicles (EVs), generative AI (artificial intelligence) and gaming businesses would take the lead among start-ups.
"If you are investing on a long-term basis, India is the destination. We are very quick learners," Mehta added.
Sharing views on funding winter, Manisha Girotra, CEO, Moelis India said this is probably the last leg of funding winter as a lot of headwinds might just abate soon. More capital coming in the second half with inflation coming and rural demand picking up, Girotra mentioned.
She also stated that the valuation craze is gone and now investors are again chasing the cash flows.
Those with stronger business models would survive, Girotra said. On post-Covid euphoria, she said, "There was irrational exuberance and free money was floating around."
The Moelis India chief also underscored that India offers easy liquidity exits, which not many countries offer.
"IPO market is lukewarm because private equity (PE) funds have a lot more avenues as an exit is no longer a concern. You have to come up with valuations backed with EBITDA," Girotra said.
She also highlighted that PE-VC investment came at $65 billion in 2021, followed by $45 billion in 2022, defying a much weaker global trend. "We are confident that PE-VC investments would continue," Girotra added.
Commenting on cryptocurrency regulation, 100X.VC's Mehta said, "Crypto space needs regulation more than ever. FTX fiasco wouldn't have happened if there was a custodian."
Business Today is hosting its first-ever Market Summit in Mumbai at St Regis today. The one-day event would see market gurus decoding the trajectory of benchmark and sectoral indices and outlook for the current year.
BT Market Today Summit would mark the association of top investors, practitioners, policymakers, global experts, business leaders, and other stakeholders from the Indian capital market ecosystem in Mumbai. The summit would explore key trends and challenges that could help the capital market play a bigger role in India's growth, allowing speakers to share their unique experiences and ideas.
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