Is funding winter nearing its end? Experts share most attractive sectors for investors
Leo Capital, stated, “After the excesses of 2021 and 2022, it was inevitable that we had a funding winter. We are beginning to see more investments in 2024, but we believe it will still be a muted environment through 2024, perhaps comparable to pre-Covid years of 2018 and 2019." Two sectors are strong contenders: B2C eCommerceand SaaS.
With 692 million connected Indians, their fingers flying across their smartphones, and 80 per cent of them preferring to shop online, eCommerce’s consistent growth continues to attract investors, opined Tanmay Kumar, Group CFO, Shiprocket. Saloni Jain, Founding Partner at Sunicon Ventures, highlighted the potential of the AI and data analytics sector.
“In 2024, the sector poised to receive the highest funding inflow in India will be Artificial Intelligence (AI) and Data Analytics. This projection stems from the increasing importance of data-driven decision-making across industries and the transformative potential of AI technologies." Manmohan Tiwanan, MD and CEO of Wodehouse Capital Advisors, shared insights on the fintech and InsurTech sectors.
“The fintech sector might have to wait a bit longer until regulations become clearer on some of the global themes that are yet to play out in India, e.g., Crypto, P2P Lending, BNPL, etc. Some other segments like InsurTech might see a renewed interest with growing penetration and product innovation." Additionally, semiconductors, spacetech, defence, energy and climate will definitely benefit from the government and corporate tailwinds.
Fintech continues to attract attention as the regulatory framework settles further, said Narendra Bhandari, General Partner, Seafund. Jain added, “In contrast to the anticipated surge in funding for AI and data
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