The Tech Panda takes a look at the investment temperament in the Indian startup ecosystem.
As per Tracxn’s India Tech 9M 2024 Report, India’s tech startup ecosystem has demonstrated resilience, securing $7.6 billion funding in 2024. In 2024 YTD, the Indian tech startup ecosystem ranked 4th globally, following the US, UK, and China, with a cumulative total of 136K startups and 99 active unicorns. In 2024 YTD, India Tech has received $7.6B in funding, a 7% drop from $8.2B in 2023 and a 66% decline from$22.4B in 2022.
Also, India saw six new unicorns in 2024 YTD, a 500% increase compared to just one in 2023. IPO numbers have surged too, with 29 tech companies going public in 2024 YTD, compared to 15 during the same period in 2023. Bengaluru, Mumbai, and Gurugram are the top funded cities in India in 2024 YTD.
An omnichannel wealth-tech platform comprising HNI, UHNI & alternate assets
In July, Angel One Wealth Limited (AOW) is developing an omnichannel wealth-tech platform comprising three integrated business verticals – HNI, UHNI and Alternate Assets.
The landscape of wealth management is rapidly evolving, with a 16% CAGR of India’s HNI population, projected to grow to 1.65 million by 2027, as per industry reports. AOW’s strategy rests on three key pillars tailored to meet the unique needs of HNI and UHNI segments – comprehensive investment products across diverse asset classes, technology-driven accessibility for clients and support of relationship managers and top-tier talent equipped with deep market insights. By adopting this approach, AOW aims to overcome industry challenges such as barriers to innovation in investment strategies, high operational cost and higher fees using new-age tech infrastructure. The Rs 2.5 billion capital infused by Angel One will be strategically deployed to develop core technological infrastructure, leveraging AI and analytics, expand presence in key markets and develop curated, expert-led product strategies and suites.
Dinesh Thakkar, Chairman and Managing Director, Angel One Limited, said, “Through Angel One Wealth we aim to cater to an expansive spectrum of clients, by leveraging technology and stay at the forefront of innovation. The seasoned investment professionals’ team, led by Srikanth, brings strong domain knowledge enables us to capitalise on the evolving wealth landscape.”
Srikanth Subramanian, Managing Director and CEO, Angel One Wealth Limited, said, “We want to reimagine wealth management for India’s HNIs and UHNIs on the bedrock of deep domain expertise and the power of technology. We are happy to have the strategic backing of Angel One in this journey, leveraging their technological prowess. We are building an omni-channel solution that will enhance the value of a trusted wealth manager through digital infrastructure and new-age technology.”
Since the Rs 2.5 billion capital infusion, AOW has begun laying the groundwork for growth. Key milestones include to further leverage the 100 plus man-years of its in-house domain experience – An Advisory Council comprising of industry thought leaders to provide strategic guidance, a Think Tank with sector experts offering insights on macro trends and asset class positioning, a Product Approval Committee driving competitive edge and an Investment Committee overseeing investment policies and fund performance has been formed. This includes a ~60-member team of wealth managers, investment professionals and tech experts with 30% diversity and average age of 32yrs fostering an inclusive work culture. Also, in-house fintech stack for wealth consolidation, analytics, portfolio governance and transaction execution, alongside an AI Innovation Lab to explore and implement new use cases.
$27M in High-Frequency Trading with Launch of XMHFT
SCOPE, a financial consulting and fundraising firm, made a significant $27 million investment in launching XMHFT, its latest venture in the high-frequency trading (HFT) sector. This investment covers a broad range of critical areas, including technology infrastructure, tech team expansion, compliance measures, API development, B2B sales relations, and continuous algorithm upgrades. XMHFT is set to deliver advanced, AI-powered HFT algorithms tailored specifically for B2B clients in the United States and India, providing mid-sized firms with access to cutting-edge trading technology at a competitive rate of $9,000 per terminal.
With the introduction of XMHFT, SCOPE is expanding its offerings to include high-frequency trading, a domain typically dominated by large financial institutions. The service leverages AI-driven algorithms designed for latency arbitrage, statistical arbitrage, and sentiment analysis, providing clients with the speed, precision, and scalability necessary to excel in today’s fast-paced trading environments.
XMHFT is strategically positioned to capitalize on the growing HFT trend, which currently accounts for 50-60% of trading volumes in US equity and futures markets. SCOPE anticipates substantial growth from XMHFT over the next three years, with revenue projections set at $450,000 in first year, $900,000 in second year, and $1.8 million by third year of operations.
Appalla Saikiran, Founder & CEO of SCOPE said, “By democratizing access to high-frequency trading technology, we’re empowering mid-sized firms to compete on a global stage, driving growth and creating value for our clients.”
Marquee institutional investors pick significant stake in India’s power sector
IndiGrid [BSE: 540565 | NSE: INDIGRID], India’s first and largest listed power sector infrastructure investment trust (InvIT), launched its preferential issue process following successful conclusion of the Offer-for-Sale (OFS) run by its sponsor KKR.
Last week, KKR successfully concluded an OFS process to bring their unitholding down from 21.17% to 3.85%. The OFS attracted significant attention from IndiGrid’s current as well as new long-term investors with the OFS being over-subscribed ~2x times, including both retail and non-retail categories. Marquee investors like L&T, HSBC Global Asset Management, SBI Life Insurance, Aditya Birla MF, Cholamandalam General Insurance, PNB Metlife, Future Generali, and others participated and picked up a stake in IndiGrid.
KKR had first invested in IndiGrid in 2019 and increased their stake further in 2021 via its Asia Infrastructure Fund-1. With over 5 years of holding period, the fund has now monetized a portion of its unitholding. However, KKR will continue to be the sponsor of IndiGrid and continue to own 100% of IndiGrid Investment Managers Limited – which remains IndiGrid’s Investment Manager.
Considering the significant interest for investment in the trust and growth potential, IndiGrid today launched its preferential issue process to raise ~INR 695 crores through primary issuance of units at a price of INR 136.43 / Unit, in-line with the SEBI regulations for preferential issue by InvITs.
IndiGrid has received investment commitments from Alberta Investment Management Corporation (AIMCo), one of Canada’s largest and most diversified institutional investment managers, and HDFC Life, one of India’s leading Insurance providers, for an investment of ~INR 567 crores and ~INR 100 crores respectively, with balance committed by other investors.
IndiGrid’s Distribution Per Unit (DPU) guidance for the full year FY2024-25 continues to be at INR 15, with the quarter 2 distribution expected to be made in November post the quarterly board meeting.
Ambit Capital and SBI Caps are running the preferential issue process on IndiGrid’s behalf.
Commenting on the announcement, Harsh Shah, Chief Executive Officer, and Whole Time Director of IndiGrid, quoted: “It is a heartening moment for us to witness such significant confidence from all classes of investors, and we are pleased to welcome multiple marquee investors on the back of the OFS. We are also delighted to welcome AIMCo and HDFC Life, through a preferential issue, in our roster of reputed investors.
Leading metal composite panel brand integrates India’s advanced Coil Coating Line in INR 30 Crore investment
In September, Euro Panel Products Ltd, which owns EUROBOND – one of the leading Aluminium Composite Panel Brands in India, integrated India’s most advanced coating line in an INR 30 Crore investment. The development aims to strengthen the Make-in-India initiative, with a significant capacity of 750 tons monthly. This cutting-edge coating line is also the country’s longest line and features a three-coat two-bake continuous processing with an accumulator, helping Euro Panel Products Ltd to mitigate dependency on Chinese materials and manufacture 100% Make-in-India products.
The INR 30 Crore investment by Euro Panel Products Ltd includes costs associated with machinery and land; It will also generate 50 immediate jobs, with another 25 in the next 6 months, contributing to local employment and economic growth. This development is aimed at enhancing the supportive ecosystem behind ACP manufacturing and will have a positive impact on the balance sheets for the upcoming fiscal years. This strategic initiative will help EUROBOND to decouple from Chinese supply chain dependencies, where coated coils were imported from China. Going forward, the company will source coils from prominent Indian manufacturers to finish the coating in-house using Indian paint, reducing the time from 2 months to 1-2 weeks — a critical step in ensuring faster service and better quality for customers.
Rajesh Shah, Managing Director of Euro Panel Products Ltd. shared his insights on the development saying, “Our focus is to facilitate a customer-oriented approach through premium quality and customisable products that contribute to the national economy. We plan to drive this strategy by adopting a comprehensive transition away from Chinese materials and strengthening the Make-in-India initiative. The impact of this development is not only limited to raising efficiency and generating new employment opportunities but also significantly reducing delivery time by over 75%, while maintaining significantly lowered RM holding in our inventories. Integrating this next-gen technology will enable our customers to choose from an infinite range of customization aspects, directly contributing to growth and scalability in future.”
Integrating the coating-line technology will also lead to Euro Panel Products Ltd undertaking in-house R&D efforts that will focus on designs and texture. This will enable the company to offer exclusive and customised designs equipped with specialised coatings and extended warranties on special requirements to its extensive clientele. The firm will focus on sourcing only base coils, to be coated based on requirements and demand. This will enable them to reduce RM inventory, as the requirement of holding coated coils of different colours and grades in stock will be diminished.
This strategic development is far from limited to enhancing employment and efficiency but reducing man-hours, optimising resource utilisation and flexibility in customisation. Furthermore, it will help the company to open up a brand new business avenue of providing coated coils, passively contributing to increased turnover.
Singapore-headquartered angel reaches first close of INR 100 cr India Fund at INR 25 cr
ThinKuvate, a Singapore-headquartered angel investment platform, announced the first close of its India fund at INR 25 crore. ThinKuvate India Fund—I reached this milestone within four months of its formal launch. The fund has already invested in four high-growth startups.
ThinKuvate plans to invest in early-stage startups from Seed to Series A, focusing on companies leveraging technology at the forefront. Companies that are building disruptive technology solutions that give them a tech-enabled advantage and defensibility as they scale. With a sector-agnostic approach, focusing on founders with complementary skills, a clear path to profitability, and scalable business models, ThinKuvate is positioned to co-invest alongside top venture capital firms and family offices, ensuring robust support for portfolio companies as they grow.
Ghanshyam Ahuja, Managing Partner, ThinKuvate, says, “We have been investing in Indian startups and saw the potential growth opportunities. That led us to launch an India-focused fund, we have reached the first milestone in little over 100 days. This validates our thesis on the next-gen innovations taking place in India, which have a global appeal.”
As ThinKuvate continues to raise its target corpus, the fund plans to invest in 30 – 40 startups with an average investment size of INR 1.5 – INR 4 crore. The fund has also attracted top tier General Partners globally, to manage the deal flow, due diligence, and overall portfolio management. ThinKuvate is becoming a trusted vehicle for diverse investors based in India and abroad. More than 50% of investors in the fund are NRIs from various countries, top of them being Singapore, Australia, the USA, the UK, and Indonesia.
Mayank Jain, CEO, ThinKuvate, says, “We have built capabilities within our team to provide support and help to startups scale faster. The profile of Limited Partners, who are working professionals with senior roles in large corporates, would be a huge differentiator for the companies we back. Our vast network will not only bring in quality capital but provide access to the founders to accelerate their growth journey post funding from ThinKuvate. As we continue to raise the target corpus, we have already built a healthy deal flow and we are confident that with this fund, we will be able to build a strong portfolio and generate stellar returns for our investors.”
ThinKuvate has made investments in four high-potential startups – Rosh.ai, Zippee, Pantherun, and NymbleUp.
