India provides a “very favorable” climate for companies to pursue initial public offerings, according to Shailendra Singh, managing director of Peak XV Partners, formerly Sequoia Capital India & Southeast Asia.
“My general view is, especially in Indian public markets, the regulatory framework, what Securities and Exchange Board of India does, what Reserve Bank of India does, what other regulators do is actually really good,” Singh told CNBC’s Tanvir Gill.
Singh, who has been with the venture capital firm for 18 years and has led it since 2011, stated that India has established “a very favorable environment” for companies to list there. “It’s both safe and dynamic in India for a young company to be able to go public.”
India provides a “very favorable” climate for companies to pursue initial public offerings, according to Shailendra Singh, managing director of Peak XV Partners, formerly Sequoia Capital India & Southeast Asia.
“My general view is, especially in Indian public markets, the regulatory framework, what Securities and Exchange Board of India does, what Reserve Bank of India does, what other regulators do is actually really good,” Singh told CNBC’s Tanvir Gill.
Singh, who has been with the venture capital firm for 18 years and has led it since 2011, stated that India has established “a very favorable environment” for companies to list there. “It’s both safe and dynamic in India for a young company to be able to go public.”
India is emerging as a bright light amid global macroeconomic turmoil, owing mostly to optimism about the country’s strong economic fundamentals, according to KPMG’s report “IPOs in India.”
Singh explained why some Indian enterprises opt to list locally, saying, “Founders are realizing that the U.S. markets may not always understand Indian companies.”
According to Peak XV, up to 20 firms in its portfolio, including Zomato and Mamaearth, have floated through IPOs. Peak XV Partners, Asia’s largest IT investor, oversees $9 billion in assets.
In June, Sequoia split its global partnership into three separate entities: Sequoia Capital in the United States and Europe, Peak XV Partners in India and Southeast Asia, and HongShan in China.
The venture capital firm has invested in over 400 companies in the technology, software, financial services, and consumer sectors, including Indian fintech firm Pine Labs, Indonesian coffee chain Kopi Kenangan, Singapore-based online marketplace Carousell, and edtech firms Byju’s and Unacademy.
Favorite sectors of India
According to Singh, India has a number of “pretty exciting” investment opportunities, with cross-border software, fintech, and consumer being the firm’s primary focus.
Peak XV is investing heavily on cross-border software, citing the potential for software companies established in India to serve the entire world.
“Fintech is often our second-largest sector. We are a powerful fintech investor. I believe India is one of the world’s most fertile marketplaces, thanks to Aadhaar, UPI, and the India stack.”
In the consumer-centric industry, he identified consumer brands, education technology, and healthcare as the firm’s investment priorities.
“We will see a lot of good education companies built in the long run,” Singh added, citing the fact that consumers in countries like India and China recognize that education is the key to upward social mobility.
He also mentioned developing industries like deep tech and semiconductors, which are exciting but still in their early stages. “We are [just] starting to make bets.”
India ‘very favorable’ for IPOs, Peak XV says, as economy and investor sentiment stay strong
