Online financial marketplace platform Maandate Saturday said that it expects the venture capitalist fund to reach a near $1.2 billion by the end of this fiscal from nearly $700 million inflows last fiscal, representing a growth of 71.42 percent.
According to the mergers and acquisitions (M&A) online platform, the euphoria and strong fundamentals of the economy is also expected to attract nearly double the VC funds which can reach nearly $2 billion in the fiscal year 2015-16.
"We see a strong traction towards inbound M&A activity in technology, material and other growth start-up enterprises in India. As the economy further recovers the expected inflows are also anticipated to increase," Abhijit Maheshwari, chief executive, Maandate told IANS.
Maheshwari further said that he expects the PE (private equity) firms to also increase exits from existing projects, so as to build a case for larger capital commitment further into the Indian economy.
"There is a risk of fresh PE capital flow stalling if the existing PE funds do not find right exit in near-term now or in the next 18 months when the economy picks up further momentum," Maheshwari said adding that with a stable currency and positive economic movement has given added advantage to PEs to exit and re-enter into new projects.
On the out flows from India, Maheshwari, said that special interest is seen in technology, engineering space and in companies that provide market access and technical expertise in Western European and the US market.
"Medium sized engineering firms, component manufacturers, technology companies and others in Germany, Netherlands and UK are of special interest for Indian companies at the moment," Maheshwari further said.
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Maheshwari added that the Indian companies are gradually increasing their capability to incorporate and integrate foreign acquired firms and this inturn will increase confidence and raise the outflows and the ability for future outbound M&As.
"Domestically a stable government, better implementation of policies, buoyant stock market, adequate liquidity and adherence to corporate governance norms will increase the attractiveness of Indian firms for foreign fund participation," Maheshwari added.
Maandate.com is a first-of-its-kind platform that assists private companies to prepare for exit, pursue acquisition and access growth capital. Maandate gives them wide visibility and exposure with global peer companies, large corporate acquirers and private equity firms, thereby encouraging cross-border M&A, exits and expanding the source of capital.
Since its foundation in 2013, the platform saw 800 deals pursued and facilitated 1,500 exchanges amongst its 1,400 members.