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BUSINESS EYE JULY 05, 2024 | The Indian Eye 36

Bullish on India’s consumption, investors

flock to fund retail sector startups

PRABHAKAR CHATURVEDI misallocation of funds. The industry
is perhaps over-correcting by focus-
New Delhi
ing on more conventional businesses
uoyed by India’s strong con- like retail and omnichannel brands,
sumption patterns, venture where more sustainable business
Bcapitalists are flocking to fund models are being funded.
retail sector startups. Shravan Shetty, Managing Di-
Investor confidence in new-age rector at Primus Partners, said, “The
retail companies and startups has sector’s share has increased as inter-
surged, with funding in the retail sec- est in the sector has remained buoy-
tor increasing by 32 per cent to USD ant, while exuberance for other sec-
1.63 billion in the first half (H1) of tors has reduced.
2024, up from USD 1.23 billion in H1 Venture capital is behaving
2023, according to data intelligence similarly to the markets, where the
firm Tracxn. long-term story of consumption
The Indian economy is on track has picked up compared to other
to emerge as the third-largest econ- themes like fintech, which has seen
omy in the world by 2026. Last year, reduced interest compared to previ-
the country’s consumption grew at ous years.”
a faster pace than that of advanced According to the Tracxn report,
economies such as China, the US, the first half of 2024 witnessed 8
and Germany, as observed in a UBS funding rounds surpassing USD 100
report. million such as Flipkart’s USD 350
The report further noted that In- million Series J round led by Google,
dia’s household consumption nearly Apollo 24|7’s USD 297 million PE
doubled in the past decade to USD round, and Meesho’s USD 275 mil-
2.1 trillion last year, with an annual lion Series F round, underscoring the
compound growth rate of 7.2 per VCs strong intent for the retail sector
cent, higher than the aforemen- companies.
tioned countries. Additionally, India Flipkart Group CEO Kalyan Krishnamurthy meets with Singapore Minister for Communications According to the survey, the
is expected to surpass Germany (in country saw a significant surge in
2024) and Japan (in 2026) to become and Information Josephine Tao, at the Flipkart Office, in Bengaluru (ANI) Monthly Per Capita Consumption
the third-largest consumer market in Expenditure (MPCE) in 2022-23,
the world. ed to remain around 60 per cent of catching up to do for venture capital with rural spending reaching Rs
Commenting on venture capital- GDP. Thus, Indian consumption is to invest in this space,” he said. 3,773 and urban spending at Rs
ists’ interest in new-age retail compa- expected to cross USD 4.5 trillion in He opines that companies such 6,459, reflecting a 164 per cent and
nies, Harmanpreet Singh, Co-found- the same period. For context, this is as Zomato and Nykaa have yielded 146 per cent increase, respectively,
er and Managing Partner of Prath more than double the current con- attractive outcomes in the consum- since 2011-12 at current prices. Ad-
Ventures, said, “India’s GDP is sumption and will equal what Chi- er-tech space. However, investors justed to 2011-12 prices, the growth
projected to reach USD 8 trillion na’s consumption was in 2015. With have witnessed large failures driven is 40 per cent in rural areas and 33
by FY32, with consumption expect- this context, there is naturally some by unsustainable unit economics and per cent in urban areas. (ANI)

Amit Shah appeals for “Sahkar se Samriddhi” through cooperation

inister of Cooperation ing of a bank (Sardar Patel Sahkar “Sahkar se Samriddhi” (Prosperity tive institutions to open their bank
Amit Shah lauded the Bhavan) constructed at a cost of Rs through Cooperation) in front of the accounts in the District Cooperative
Mefforts made under the 18.70 crore, as per an official state- entire country and the world. Banks so that a strong economic
“Sahkar se Samriddhi” or prosper- ment of the Ministry of Cooperation. Addressing the program, the structure could be built in the coop-
ity through cooperation initiative Sahkar Se Samriddhi scheme Union Home and Cooperative Min- erative sector, an official release of
while inaugurating the 76th Annual aims to maximise the potential of co- ister said that Kheda is the same dis- the Ministry of Cooperation said.
General Meeting of Kheda District operatives to propel economic prog- trict from where Amul was started He said that the centre is run-
Central Cooperative (KDCC) Bank ress in India. The Ministry of Cooper- under the successful guidance of the ning pilot projects under the new
Limited, Nadiad, Gujarat through ation is in charge of the initiative. country’s first Home Minister Sardar initiative “Cooperation Amongst
video conferencing. The Union Minister said that Vallabhbhai Patel. Shah appealed to Cooperatives” in Banaskantha and
He inaugurated the new build- Amul set an example of achieving the people associated with coopera- Panchmahal districts.

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