In 2019, around 26 lakh employment opportunities were created by start-ups backed by private equity and venture capital investors, showing an increase of 27 per cent from the preceding year, according to a report.
Such start-ups had created 20.5 lakh direct and indirect jobs in 2018 and 16.5 lakh employment opportunities in 2017.
The report noted, “Private equity or venture capital (PE/VC) investments are not only creating direct and indirect jobs, but also bubbling up newer fast-growing job segments such as professional services, freelancers, delivery and driver partners”.
Indian Private Equity and Venture Capital Association (IVCA) in partnership with Zinnov, a global management and strategy consulting firm, prepared this report.
The report pointed that technology-led solutions are now part of the lives of Indians even in the remotest corners of the country and across income segments as alternative investment funds are focused on Indian market too.
This report was developed in order to understand the value created by venture capital and private equity investors through technology and technology-enabled start-ups in India. It examined the role of VC/PE investors, dimensions in which they are creating value for the country and their impact on job and wealth creation.
The venture capital witnessed around 500 deals worth US$ 2.1 billion in 2019 as the investing space in the country has been constantly evolving.
IVCA President Mr Rajat Tandon said, “Further, the coming up of several new VC funds and the successful raising of new rounds by old funds reinforces the investors’ confidence in the domestic market. This is a testament to the substantial amount of wealth, jobs, and development that have been created”.
He further added, “Continuing with the current pace, support, and interest from policymakers and the investors, revolutionary times are ahead”.
Zinnov CEO Mr Pari Natarajan said that the importance of entrepreneurship, investments, technology and innovation to turbocharge India’s growth is undeniable, with start-ups and investors at the centre of it all.
“The cumulative valuation of the start-up ecosystem has witnessed a colossal increase in the last 6 years — as much as 15 times since 2014, to touch US$ 141-149 billion in 2020. This value has created a virtuous cycle of wealth creation and distribution across stakeholders in the ecosystem, thus putting India on its goal to become a US$ 5 trillion economy by 2025,” Mr Natarajan added.
The report further added that the reliance of small and medium businesses on start-ups to adopt digitalisation to drive revenues, productivity and efficiency at scale has increased.
Source: IBEF
Image Courtesy: Twitter
You may also like
-
Trade Connect E-platform For Exports Is Single Window, Fast, Accessible And Transformational: Shri Piyush Goyal
-
Dot Simplifies Approval Processes For Telecom Licenses And Wireless Equipment
-
Coal Production and Supply Trends on Positive Trajectory
-
Union Minister To Release Booklets On Promotion Of Indigenous Species & Conservation Of States Fishes
-
2nd India-Japan Finance Dialogue held in Tokyo on 6th September, 2024
