Even as private equity and venture capital investors have amassed huge capital for their India-related funds, in terms of actual deployment, they seem to be increasingly pulling their purse strings, waiting to separate the wheat from the chaff and identify startups with superior unit economics.
“It is not only the early-stage transactions that are bearing the consequences of the global economic uncertainty. Even mega deals have taken a hit where investors typically engage with established startups,” said Raja Lahiri, partner at consulting firm Grant Thornton.