Purplle-Backer Verlinvest will double its investments in India

The VC firm says it has invested over $110.3 million annually in India over the past few years and plans to focus on the lifestyle and healthcare sectors in the future

The head of Verlinvest Asia also drew attention to the challenges facing the Indian market, including a longer exit time for start-ups and the depreciation of the rupee, which negatively affects returns

After entering India around 15 years ago, the VC firm has backed startups such as Purplle, BYJU’S, Lahori Zeera, Wakefit, Veeba, Epigamia, Ferty9, among others.

Belgian venture capital (VC) firm Verlinvest, which invested in Blue Tokai last month, aims to double its annual investment in India within three years.

Verlinvest managing director and head of Asia, Arjun Anand, told Reuters that the VC firm has invested over $110.3 million annually in India over the past few years and aims to double that amount in the next two-three years. The main sectors of interest will be lifestyle and healthcare.

“India is a winning market for Verlinvest in Asia and we are allocating more resources as we continue to improve investment returns,” Anand was quoted as saying.

However, he also highlighted challenges in the Indian market, including longer startup exit times and rupee depreciation, which negatively affects returns.

Still, Anand said India “offers much greater growth opportunities and that makes the profits attractive.”

Verlinvest entered India about 15 years ago. The VC firm has supported Indian startups such as Purplle, BYJU’S, Lahori Zeera, Wakefit, Veeba, Epigamia, Ferty9, among others.

Her most recent Indian venture was the specialty coffee chain Blue Tokai Coffee Roasters, when she was its leader $35 million Series C financing round.

In addition to startups, the Belgian company also supported early-stage VC fund V3 Venture, which launched operations in India in April last year. The fund plans to make total investments of EUR 100 million (approximately INR 896.5 million) in India, Europe and the USA.

Led by Arjun Vaidya, the fund mainly invests in pre-Series A and Series A rounds in consumer-centric brands. His average ticket size is between $1 million and $5 million. From the very beginning, V3 Ventures has supported Kuku FM, Eka.care, Entri, Go Zero, Dil Foods.

Anand’s comments come at a time when India’s startup ecosystem is enjoying renewed investor interest. According to Inc42’s “Indian Tech Startup Funding Report, Q3 2024”, in the first three quarters of 2024 increasing startup funding by 20% year over year to $8.7 billion from $7.2 billion in the same period a year ago. The number of transactions also increased to 766 from 691 transactions in 2023.