Market Insights Financial Capital Raising

Traditional Capital Raising - India

India

The Total Capital Raised in India's Traditional Capital Raising market market is expected to reach €2.74bn in 2024.
Venture Capital is set to dominate the market with a projected market volume of €2.19bn in 2024.
When compared globally, the United States will lead in Capital Raised with €145,900.0m in 2024.
In India, the Traditional Capital Raising market is seeing a resurgence with a focus on local investors and innovative fundraising strategies.

Key regions: Israel, Brazil, United States, Europe, United Kingdom

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

The Traditional Capital Raising market in India has been experiencing significant growth in recent years.

Customer preferences: Indian investors have traditionally favored traditional capital raising methods such as initial public offerings (IPOs) and private placements. This preference can be attributed to the perceived stability and reliability of these methods, as well as the potential for high returns. However, there has been a shift in customer preferences towards alternative methods such as crowdfunding and venture capital funding. This can be attributed to the increasing popularity of startups and the rise of the digital economy in India.

Trends in the market: One of the key trends in the traditional capital raising market in India is the increasing number of IPOs. This can be attributed to the growing number of companies looking to raise capital for expansion and the increasing interest from investors. Another trend is the rise of private placements, which have become an attractive option for companies seeking to raise capital quickly and efficiently. Additionally, there has been a surge in crowdfunding platforms in India, providing a new avenue for startups and small businesses to raise capital from a large number of individual investors.

Local special circumstances: India has a vibrant startup ecosystem, with a large number of innovative companies emerging in various sectors such as technology, e-commerce, and fintech. This has created a favorable environment for traditional capital raising, as investors are keen to invest in these high-growth companies. Additionally, the Indian government has introduced various initiatives to promote entrepreneurship and ease the process of raising capital, such as the introduction of the Startup India program. These factors have contributed to the growth of the traditional capital raising market in India.

Underlying macroeconomic factors: The growth of the traditional capital raising market in India can be attributed to several underlying macroeconomic factors. Firstly, India has been experiencing strong economic growth in recent years, which has created a favorable environment for capital raising. Secondly, the Indian government has implemented several economic reforms aimed at attracting foreign investment and promoting entrepreneurship, which has further boosted the traditional capital raising market. Finally, the increasing penetration of internet and smartphone usage in India has made it easier for companies to connect with investors and raise capital through digital platforms. In conclusion, the traditional capital raising market in India is experiencing significant growth due to changing customer preferences, favorable local circumstances, and underlying macroeconomic factors. The increasing number of IPOs, rise of private placements, and the popularity of crowdfunding platforms are all contributing to the growth of the market. With India's vibrant startup ecosystem and strong economic growth, the traditional capital raising market is likely to continue to thrive in the coming years.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average deal size, and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), and new businesses registered (number). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.