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Unlocking Growth: How Alternative Investment Funds Are Fuelling Tech Startups In India

Inc42 · 6m

Alternative Investment Funds (AIFs) have become a major force in India's tech startup ecosystem. They provide startups with access to diverse and flexible capital, playing a crucial role in their growth. Over the past five years, AIFs have experienced significant growth, surpassing mutual funds and portfolio management services. India's tech startup ecosystem is flourishing, with over 1,230 startups across the country. Factors such as increasing internet penetration, supportive government policies, and the involvement of venture capital firms and angel investors contribute to this growth. AIFs offer different investment options tailored to specific investor preferences and goals, supporting startups and early-stage ventures, and targeting sectors like real estate and private equity. AIFs not only provide capital but also offer mentorship and industry expertise to startups. The AIF sector is expected to surpass mutual funds in the next five years, reaching an estimated INR 43.64 Lakh Cr, contributing to the growth of India's tech startup landscape.