TLDR:
In a revised Quarterly Reporting Format for Alternative Investment Funds (AIFs), the Securities and Exchange Board of India (SEBI) has introduced new regulations following recommendations from the Indian Venture and Alternate Capital Association (IVCA) and other industry members. The report also found that 44% of investors are actively backing start-ups from Tier 2 and 3 cities, while 64% are focused on technology-based ventures. In other news, Hyderabad-based fintech NBFC VIVIFI has secured $75 million in funding, and MakeMyTrip has acquired a majority stake in intercity car rental provider Savaari. Additionally, industry experts are calling for higher spending on digital infrastructure in the e-commerce sector, and a report shows that global PE/VC investments declined by 11% to $49.8 billion in 2023.
SEBI Introduces Revised Reporting Format for AIFs
The Securities and Exchange Board of India (SEBI) has introduced a revised Quarterly Reporting Format for Alternative Investment Funds (AIFs) based on recommendations from the Indian Venture and Alternate Capital Association (IVCA) and other industry members. These new regulations aim to ensure compliance with SEBI circulars and provide greater transparency and accountability in the alternative investment space.
Investors Back Tier 2 & 3 City Start-Ups and Tech Ventures
A recent report has found that 44% of investors are actively backing start-ups from Tier 2 and 3 cities in India. These investors recognize the potential of these cities and believe that they can be a source of innovation and economic growth. Additionally, the report found that 64% of investors are focused on investing in technology-based start-ups, reflecting the increasing importance of technology in various sectors.
Hyderabad-based Fintech NBFC VIVIFI Secures $75 Million Funding
Hyderabad-based fintech non-banking finance company (NBFC) VIVIFI India Finance has raised $75 million in funding. The RBI-registered NBFC offers sachet-sized loans to customers who have the ability and intent to repay. This funding will allow VIVIFI to continue expanding its loan book and reach more customers across India.
MakeMyTrip Acquires Majority Stake in Savaari
Online travel company MakeMyTrip has acquired a majority stake in intercity car rental provider Savaari. Despite the acquisition, Savaari will continue to operate as an independent entity led by its existing leadership team. This acquisition strengthens MakeMyTrip’s position in the travel and transportation industry and allows it to offer a wider range of services to its customers.
Call for Higher Spending on Digital Infrastructure in E-commerce Sector
Industry experts are urging the Indian government to increase spending on digital infrastructure in the e-commerce sector. They argue that investing in a robust digital infrastructure, including accessible internet and the Unified Payments Interface (UPI), can accelerate the transition of offline retail businesses to the online space. This would support the growth of the e-commerce sector and boost the Indian economy.
Global PE/VC Investments Decline in 2023
A report has revealed that global private equity (PE) and venture capital (VC) investments declined by 11% to $49.8 billion in 2023. The decrease in investments can be attributed to a lack of interest in India’s start-up ecosystem. However, despite the decline, there is sustained interest in investing in artificial intelligence (AI) technologies, which could drive innovation and growth in various industries.
