Zephyr Peacock has chalked out plans to raise $200 million from a mix of global and domestic investors to bolster growth opportunities for Indian enterprises.
The New York based Zephyr Peacock, known for its investments in emerging markets, is strategically looking to amplify its investment pool to provide crucial growth capital to Indian enterprises.
The move reflects a significant shift in investment focus from China to India in the wake of changing global dynamics.
Mukul Gulati, President and Chief Investment Officer of Zephyr Peacock India, emphasized the rising interest in India among global investors. He stated, “India’s prominence on the world stage has escalated, attracting pension funds and large endowment funds with substantial capital reserves.”
Gulati, with nearly two decades of experience advocating India’s investment potential, noted the evolving perception of India’s investment landscape. “Previously, India lacked the scale and consistent returns for investors, especially in the private sector. However, the scenario has transformed, with India now assuming a pivotal role globally,” Gulati explained.
Zephyr Peacock Chief says India’s is now assuming a pivotal role globally
The investment landscape has witnessed a seismic shift due to China’s reduced global engagement, leading to a decline in foreign direct investments. In contrast, India’s stature has risen, evidenced by its increased weightage in global indices and heightened investor interest.
Gulati drew attention to this shift, affirming, “The decline in China’s influence has significantly elevated India’s importance for Western investors, especially considering India’s digitalization efforts and steady GDP growth.”
Zephyr Peacock, initially aiming for a $120-130 million India-focused fund, revised its target to $200 million, bolstered by confidence in their strategy and India’s expansive investment potential.
Gulati asserted, “Our increased confidence, coupled with the promising opportunity landscape in India, prompted us to recalibrate our fund size.”
However, despite ample available capital, investors remain cautious in deploying large sums, considering the changing global financial landscape. Gulati pointed investors’ cautious approach, stating, “The era of abundant and inexpensive capital is over. Investors now seek secure and viable options, particularly amidst the cooling startup funding scenario in India.”
Reflecting on the investment landscape during the pandemic, Gulati noted the challenges posed by inflated valuations and unsustainable business models. He pointed out the shift in founder behavior towards a more sustainable and prudent approach, aligning with investor expectations.
As the investment ecosystem undergoes a period of recalibration post-pandemic, investors are poised to explore opportunities arising from the market corrections. Gulati goes on to state, “Investors, both existing and prospective, are eyeing this phase as a potential avenue for sound investments amidst the changing investment landscape.”