Global hedge funds and asset management companies are making a cautious return to India's resurgent start up ecosystem, 18 months after they pulled back amid a churn in the domestic market. Several Hong Kong-based funds, including Janchor Partners, are in talks with Droom Technology, an online marketplace for used automobiles, for its next fundraising, estimated at about $50 million.
Chief Executive at PolicyBazaar, Yashish Dahiya said, “We have taken money from Steadview Capital and Tiger Global. Look, it's easy and non-interfering capital, with its own pros and cons. But it's mostly been pros.” He added, “At every stage you need different things. If you want someone to just give you capital, and one in a while guidance, it's great. But if you are looking for specific leverage, on-the-ground support, then may be not.”
Managing Director at investment bank Signal Hill India, Nitin Bhatia said, “What we are seeing now is a very credible set of investors... Assets that have created scale and competitive moats are clearly the targets for these funds to make early investments. The markets here now are much more in line with their global peers, and it is easier to justify valuations now.” Some of the funds that are currently closing or negotiating deals had scouted for investment opportunities in India during the start up boom years of 2013-15, but had held back from closing transactions due to multiple reasons.