Private Equity /VC in India

Is anyone involved in the PE/VC scene in India? What are the prospects in the next five years? How are the deal structuring and regulations different from North American Markets?
India seems to be in the middle of a startup boom. Any insights or comments on the topic would be much appreciated.

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Comments (13)

May 24, 2017 - 9:32pm

Valuations are at all time high and most of the deals are in growth equity as the founders are not willing to give up control.

One of the main difference, if Im not wrong, is the bankruptcy law where it is cheaper to sell the loss making / distressed business for $1 instead of declaring bankrupt.

While the country itself is booming, alot of businesses got hit by the recent demonetization, In addition, investors are shying away from certain sectors with increasing competition from foreign companies e.g. Flipkart vs Amazon.

May 26, 2017 - 12:15am

Can only talk about VC.

Better time to be an entrepreneur than working in a VC (True for most of APAC). Easier to get funding than making any money out of the investments. Non-existent local M&A scene, too much funding, all time high valuations have ruined the market. Also VCs have raised too much funding and not enough good and sustainable business models out there.

Most VC funds don't make much money anyway so guess its all the same all over the world.

May 26, 2017 - 12:16am

VC in India? (Originally Posted: 05/18/2010)

Guys - how is the VC scene in India? I might end up interviewing for Sequoia cap - wondering what the scene is like, typical salary levels at analyst level etc.

Any help would be great!

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May 26, 2017 - 12:18am

VC in India (Originally Posted: 07/24/2011)

Ok, so please bear with me.

I lke eastern countries, and India in particular. I'm pretty sure I want to be an entrepreneur sooner or later, and possibly in a developing country.

So I decided I'd like to intern in a VC fund in India/China (if I managed to find a postion I'd take a gap semester/year from my master (good european school).

This would be a first best choice for several reasons: I'd love to spend some time in india, VC is prestigious and most of all being bombarded by startup ideas by smart indians (as a job in VC would entail) might help me understanding what kind if venture I'd like to start on my own.

The only problem is that I take it it's very very very difficult to land a real VC job out of undergrad in the US, and I believe it's even harder in India. I'd be interested in funds like Accel, Intel, Matrix, Sherpalo, Canaan and others that are active in the silicon valley.

Do you think obtaining something like this is possible, and how?

Regarding me: I study at a not-very-famous-but-top-ranked program in europe. I'm currently interning in a M&A boutique, and I've been a guest assistant to a couple of professors at Harvard.

Edit: A good friend of mine is Indian, and even though she didn't know any VC funds she told me she would get some info.

Edit2: I have several VC partners (Accel, Intel, Nexus) in India on my linkedin, because we have a mutual acquaintance. I've never spoke to this acquaintance, since he's just an indian VP of my firm in india. Is there any way I could use this to my advantage?

May 26, 2017 - 12:20am

I would also be interested in this in case anyone has info...

Pretty women make us BUY beer. Ugly women make us DRINK beer.
May 26, 2017 - 12:21am

I mean if I get a good enough book and some experience in IBD M&A I might want to start a VC or PE fund with some other guy that is from there in mumbai (tons of finance activity) but thats still a dream.

I want a lady on the street, but a freak in the bed, Go Bucks!!
Jul 24, 2018 - 7:00am

Background : I have a very unconventional background compared to traditional VC analysts in India. I worked for 3 years in audit / assurance and taxation while pursuing Chartered Accountancy (Indian equivalent of US CPA). I started interning with a newly launched technology focused VC fund and converted to a full-time role as an Investment Analyst.

Addressing your query, usually Indian VC funds or offices of VC funds based in Silicon Valley usually hire students out of premier engineering colleges (Indian Institutes of Technology) for entry-level roles. A key reason for hiring out of these institutions is that they can leverage the alumni network. Also, a recent trend has been the hiring of people with prior entrepreneurial experience / stints with highly funded Indian startups.

For associate level roles, an MBA is a must.

The ecosystem in India has picked up with a lot of new funds being launched as well as the push from regulators to provide startups with incentive & funding.

The best suggestion would be to cold email / check new funds & join as an intern. Usually it translates into a full-time role.

Hope this helps :)

Most Helpful
Mar 31, 2019 - 4:27pm

I have a few friends who work in IB/VC/ PE in India. Here's my 2 cents from what I've generally heard-

While India is in a market boom, markets are still much smaller that US. Deal sizes are much smaller and competition is very high. Heard of a bank being left lead just for league table ranking. India is still a family owned business economy, so PE hasn't quite developed as one would expect it to.

Hiring - Seems to be biased towards IIT/ IIMs. VC firms like to hire IIT/IIMs are they can leverage their network. Also, the number of graduates/jobs available is too high. That being said once you break in, it is much easier to switch.

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