Startup firms hope to raise 8 to 12 billion dollars, MD of Peak XV Partners gave statement in ‘Startup Mahakumbh’ – startup firms hope to raise 8 to 12 billion dollars MD of peak – StartUp News

Domestic startup companies can raise approximately 8 to 12 billion dollars this year. Ranjan Anandan, managing director of venture capital company Peak 15 Partners (formerly Sequoia Capital), has expressed this estimate. This comment of Anandan is being linked to the improving situation for startup companies. Many people feel that it may become easier for units in this sector to raise business capital in the year 2024.

In the ‘Startup Mahakumbh’ organized in New Delhi, Anandan said that Indian startup units can easily grow their business with an amount of about $ 10 billion (about Rs 80,000 crore).

He said, ‘Last year these companies had raised $7 billion. Everyone said that this figure is very low. But in reality it was not so. This amount could have been zero because we had raised the amount for 6 years in just 2 years.

Anandan said that in the next five years, the availability of business capital for startup companies will be normal and it will grow at a natural pace.

In the year 2022, domestic startup companies had raised a total amount of $ 25 billion. According to Traxon, in 2021 these units had raised $41.1 billion. After raising huge amount for two years, the situation changed in 2023 and this figure came down to $8.4 billion. Signs of improvement in the situation are being shown at a time when startup companies are facing challenges in raising funds.

The reason for this is that investors are investing in these units very carefully. According to Anandan, after receiving huge amount from investors in 2021 and 2022, around 8-10 billion dollars of investment was coming in the startup sector annually. He said that currently $20 billion is available for use in the Indian startup sector.

According to Sanjay Nair, former chairman and CEO of KKR India and now founder and chairman of Sorin Investments, fundraising activity and valuations are not accurate parameters to gauge the health of startup companies.

New deals were less last year due to investors becoming more cautious due to new economic challenges in the world and flaws in business operations. In the new year, the focus of founders and investors will also be on the business operations of startup units.

Former NITI Aayog CEO Amitabh Kant stressed the need for strong governance and realistic evaluation. Kant said that we have seen many startup units growing rapidly and then collapsing. He said that in view of this turmoil, special attention should be paid to business operations in startup units.

First Published – March 18, 2024 | 11:14 PM IST

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