Fitch has projected that India's economic growth will rise to 7.3 per cent in the next fiscal and further to 7.5 per cent by 2019-20, despite uncertainties clouding the global economic picture. The first half of this year suggests positivity too. The business sector has shown tremendous growth in terms of advancements, technologies and partnerships. Take FDI for instance, major foreign giants have been keen in partnering with the Indian startups, showing that there's great scope of growth in the coming days.
In the first half of this year, IvyCap has seen significant movement in terms of business opportunities. We recently set up a Rs 500 cr Venture Debt fund to capture opportunity in that space that is wide open in India. We also revamped our startup-centric online networking platform 'IvyCamp' by incorporating AI, and announced a strategic partnership with Sonata Software to bridge the gap between corporates and outside innovation. The performance trends of our portfolio companies are indicative of a promising future.
The next couple of months promise to bring in much excitement, trepidation and debate as the elections get underway. There will be a short term speculation in the business sector about the possible outcomes of the elections and this might lead to a short term volatility in terms of deal activity in growth stage investing. While some large investors may hold their decision to invest in India until the elections are over, the investment activity will continue selectively in different sectors.
An important announcement that took place this month was the acquisition of Flipkart by Walmart, which was a turning point in the startup and e-commerce ecosystem of India. There has been a lot of debate around both the success and failure of the deal, however, it looks like this deal is indicative of an upward trajectory of India's e-commerce segment and the interest of leading global players in the same.
With the theme of our newsletter this month celebrating 'World Environment Day', it gives me immense pleasure to end with a little something on the importance of a sustainable future. This year is particularly special as India is the global host of 2018 World Environment Day with "Beat Plastic Pollution" as the theme for this year's edition. With an increase in population and urbanization, preservation of the environment has become a major concern. Every person on their individual level should take it as their responsibility to preserve the planet for the future generations. In the current scenario, it is extremely important for companies to create businesses that are sustainable or make their businesses sustainable. Some of the major companies have started working towards a sustainable future- from recycling of floral waste to providing solar energy in the household, these companies have found various alternatives to protect nature, while continuing to create value for stakeholders.
I wish and urge everyone one of us to do our bit in creating a healthier environment and a sustainable future.
Founder & Managing Partner,