Kashyap Chanchani of Rainmaker Group outlines the contraction of venture capital deployment in India from 2021 through 2023.
Insight
Chanchani: Indian Markets Can Absorb $80B–$100B in Equity Annually
“So you know, with our four trillion market cap, our capacity to absorb companies every year is probably about, you know, say two to two and a half percent of the market cap, which is anywhere between say, 80 to a hundred odd billion dollars.”
Prediction Partly held up
Chanchani: Indian startup IPOs will cap out at $4B this year
“So anywhere between so what is said is that for FYI, this particular financial year we'll end up having IPOs around one lakh crore, which is what? About 12 odd billion dollars? Just twelve billion dollars, right? So what does that leave for us? Maybe about, yo…”
Prediction Not checkable as stated
Chanchani: Indian quick commerce market cap could reach $100 billion
“Today, if a DMART is being valued at what it is, right? I mean, I don't think it's outrageous to believe that, you know, the quick commerce market cap in India can go all the way up to say even, even a hundred billion dollars.”
Prediction Not checkable as stated
Chanchani: Indian startups will create hundreds of thousands of wealthy employees
“I think that third wave is being brought about by our startups where, you know, we'll probably end up seeing, you know, lakhs of people actually you know, becoming rich. By being simply employees rather than, you know, becoming founders”
Insight
Chanchani: Founder-led companies clearly outperform professional CEOs on returns
“When it comes to a trade off between a founder and a professional CEO, I mean, if you look at the track record of, you know, the hundreds of companies, you know, in US, in China, in India, I think the choice is very, very clear. When you look at the track reco…”
Assertion Supported
Chanchani: Listed Indian Startups Total ~$70B of India's $4T Market Cap
“Would be close to about seventy-odd billion dollars in terms of evaluation, Siddharth, from about a four trillion dollar valuation that the Indian markets have at large.”