{"id":29459,"date":"2025-06-01T04:09:16","date_gmt":"2025-06-01T04:09:16","guid":{"rendered":"https:\/\/financialrush.com\/?p=29459"},"modified":"2025-06-01T04:09:16","modified_gmt":"2025-06-01T04:09:16","slug":"indian-tech-fund-sees-domestic-opportunity-akin-to-1990s-silicon-valley","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=29459","title":{"rendered":"Indian tech fund sees domestic opportunity akin to 1990s Silicon Valley"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Stay informed with free updates<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Simply sign up to the <!-- -->Indian business &amp; finance<!-- --> myFT Digest &#8212; delivered directly to your inbox.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=6ec53269-3e90-4288-9119-c2f8102b01b3&amp;concept-id=16c775ab-378a-4ba0-aa9c-4cd9898bfcb7\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>The investment opportunity in India\u2019s technology sector is akin to Silicon Valley in the 1990s or China in the 2000s, according to the founders of an Indian tech-focused hedge fund set to launch next year, as foreign capital shows signs of returning to the market.<\/p>\n<p>India-based Panvira aims to raise $200mn in foreign capital to invest from January 2026 in the burgeoning tech sector of the world\u2019s most populous country. The fund will focus on public rather than private markets to capitalise on a <a href=\"https:\/\/www.ft.com\/content\/a5ee412f-34ca-430b-b294-39afb8ffba12\" data-trackable=\"link\">surge of initial public offerings<\/a> amid sky-high valuations.<\/p>\n<p>\u201cIf you want to participate in the value creation of a tech company between $2bn and $10bn in the US, you would have to go through [private equity], while in India that would be done through a public tech investor,\u201d said Panvira co-founder Vaibhav Singh, who previously led Asian equities coverage at US hedge fund Coatue.<\/p>\n<p>\u201cIndia is a market where companies are choosing to go public earlier, and also choosing to go public domestically.\u201d<\/p>\n<p>Panvira\u2019s plans highlight renewed interest among global asset managers in India after an economic downturn hit corporate earnings and sparked an <a href=\"https:\/\/www.ft.com\/content\/d7ba1339-5326-4265-a360-04574a9239c0\" data-trackable=\"link\">exodus of foreign investors<\/a> last year. The blue-chip Nifty 50 index is up about 4 per cent this year after retreating from a record high in September.<\/p>\n<p>This week, BlackRock\u2019s fund management joint venture with Jio Financial Services, owned by Asia\u2019s wealthiest man Mukesh Ambani, received regulatory approval to begin operations, nearly two years after announcing the tie-up.<\/p>\n<p>Sanlam, a South African financial services group, on Tuesday acquired a 23 per cent stake in Mumbai-based Shriram Asset Management. Carson Block\u2019s hedge fund, Muddy Waters, is also looking to set up an investment vehicle in <a href=\"https:\/\/www.ft.com\/india\" data-trackable=\"link\">India<\/a>.<\/p>\n<figure class=\"n-content-image n-content-image--full\" data-component=\"image-set\"><picture><source media=\"(min-width: 700px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ad0de39c3-44e6-4289-9b3b-5cd72a8ac663?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ad0de39c3-44e6-4289-9b3b-5cd72a8ac663?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ad0de39c3-44e6-4289-9b3b-5cd72a8ac663?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=3 3x\" width=\"2274\" height=\"1516\"\/><\/picture><figcaption class=\"n-content-picture__caption o3-editorial-typography-caption\"><span>Akhil Chainwala, left, and Vaibhav Singh pushed back on the idea that Indian equities were overvalued<\/span><span> <!-- -->\u00a9 Panvira<\/span><\/figcaption><\/figure>\n<p>Singh and his co-founder Akhil Chainwala compared India\u2019s <a href=\"https:\/\/www.ft.com\/technology-sector\" data-trackable=\"link\">tech sector<\/a> to Silicon Valley in the 1990s and especially to China in 2005, when giants such as Alibaba were still young and funds such as Hillhouse had just launched to connect the local market with outside capital.<\/p>\n<p>\u201cIf you were Chinese abroad at a global investment firm\u2009.\u2009.\u2009.\u2009it was the moment to go back and build in China. I think we\u2019re at a similar moment where it\u2019s time to go and build in India,\u201d said Singh, who noted that China\u2019s GDP a head at the time was close to India\u2019s figure today.<\/p>\n<p>\u201cWe do feel that the opportunities in India are big. We feel not just in terms of the 2005 China moment but also the late \u201890s in the US.\u201d<\/p>\n<p>The fund \u2014 known as a \u201cTiger grand cub\u201d because Singh\u2019s previous fund, Coatue, was founded by an alumnus of the vaunted tech investment group Tiger Global \u2014 has the backing of global investors including a \u201cprominent US institutional investor\u201d, according to Panvira.<\/p>\n<aside aria-labelledby=\"aside-label\" class=\"n-content-recommended--single-story n-content-recommended--inset\" data-component=\"recommended\">\n<p class=\"n-content-recommended__title o3-type-body-highlight\">Recommended<\/p>\n<div class=\"o-teaser o-teaser--article o-teaser--small o-teaser--stacked o-teaser--has-image js-teaser\" data-id=\"25cac131-16f5-4819-aa79-ca2ea51d31cc\">\n<div class=\"o-teaser__image-container js-teaser-image-container\"><a href=\"https:\/\/www.ft.com\/content\/25cac131-16f5-4819-aa79-ca2ea51d31cc\" data-trackable=\"image-link\" data-trackable-context-story-link=\"image-link\" tabindex=\"-1\" aria-hidden=\"true\"><\/p>\n<div class=\"o-teaser__image-placeholder\" style=\"aspect-ratio:2290\/1288\"><img decoding=\"async\" class=\"o-teaser__image\" src=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https%3A%2F%2Fwww.ft.com%2F__origami%2Fservice%2Fimage%2Fv2%2Fimages%2Fraw%2Fhttps%253A%252F%252Fd1e00ek4ebabms.cloudfront.net%252Fproduction%252Fb518f0c6-36f2-4086-abc3-af098e4c9bb3.jpg%3Fsource%3Dnext-article%26fit%3Dscale-down%26quality%3Dhighest%26width%3D700%26dpr%3D1?source=next&amp;fit=scale-down&amp;dpr=2&amp;width=240\" alt=\"People walk outside the National Stock Exchange building in Mumbai\"\/><\/div>\n<p><\/a><\/div>\n<\/div>\n<\/aside>\n<p>Foreign observers have warned that India\u2019s equities have been pumped up by retail and pension savings. The average price-to-earnings ratio of the Nifty 50 is 22.7, compared with 23.3 for the S&amp;P 500 index and 15 for China\u2019s CSI 300.<\/p>\n<p>Singh and Chainwala pushed back on the idea that Indian equities were overvalued, citing high GDP and corporate revenue growth compared with the US.<\/p>\n<p>Panvira will be domiciled in Gift City, a special economic zone in Gujarat, Prime Minister Narendra Modi\u2019s home state. The city has been luring financial institutions including HSBC and JPMorgan with tax exemptions and other incentives in the hope of creating a rival to Singapore and Dubai, popular hubs for offshore investment in India.<\/p>\n<p>\u201cIndia is a fairly high noise-to-signal ratio place. There is an edge, alpha, to being local,\u201d said\u00a0Singh, referring to the ability to find information that could contribute to investment decisions\u00a0amid daily life.<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/6ec53269-3e90-4288-9119-c2f8102b01b3\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Stay informed with free updates Simply sign up to the Indian business &amp; finance myFT Digest &#8212; delivered&hellip;\n","protected":false},"author":7,"featured_media":29460,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-29459","post","type-post","status-publish","format-standard","has-post-thumbnail","category-tech","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/29459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29459"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/29459\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/29460"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}