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Capital Call

APRIL 2024

Highlights		Advocacy		IVCA In News		PE/VC Deal Tracker		New Members	Get In Touch

Highlights

	IVCA at Startup Mahakumbh 2024

This past month marked a significant moment for the Indian startup ecosystem with the culmination of Startup Mahakumbh 2024. As proud partners, IVCA played a pivotal role in steering this grand celebration of innovation and entrepreneurship, highlighting our commitment to the alternate asset industry. This landmark event was led by the collaborative efforts of ASSOCHAM, NASSCOM, Bootstrap Incubation & Advisory Foundation, TiE, and IVCA, showcasing sector-focused pavilions and India's most innovative startups under the central theme 'Bharat Innovates.'

A Unified Front: In a display of unity and foresight, our members had the privilege of attending Prime Minister Narendra Modi's special address, securing front-row insights into the visionary ideas shaping India's startup landscape.

Fostering Leadership: We hosted a Corporate Governance Masterclass, emphasizing the importance of sustainable business practices and ethical leadership. This endeavor aimed to equip the next generation of startups with the knowledge needed to meet global standards More details here. More details here.

Expanding Horizons: With an eye on the untapped potential beyond India's metro cities, IVCA supported a workshop on Angel Networks in Tier 2 and 3 towns and cities. This initiative sought to mobilize more capital for local entrepreneurs, empowering them with the necessary resources to succeed in a competitive ecosystem.

Spotlight on Support: Through our outreach and promotional activities, IVCA ensured that Startup Mahakumbh received the visibility it deserved.

IVCA extends its warmest congratulations and gratitude to all individuals and organizations whose collective efforts have turned the vision of Startup Mahakumbh 2024 into a resounding success. As a proud partner, we are thrilled to celebrate the remarkable contributions of:

• Government Leadership:

congratulations

• IVCA Members and Industry Leaders:

Prashanth Prakash, Founding Partner, Accel
Archana Jahagirdar, Founder & Managing Partner, Rukam Capital
Vineet Rai, Founder, Aavishkaar Group
Sanjeev Bikhchandani, Co-founder and Executive Vice Chairman, Info Edge
Anjali Bansal, Founding Partner, Avaana Climate and Sustainability Fund
Sanjay Nayar, Sr. Vice President, ASSOCHAM
Vikram Gupta, Founder and Managing Partner, IvyCap Ventures

Their expertise and unwavering commitment were key to the successful execution of this landmark event. IVCA is proud to have collaborated with such distinguished leaders and visionaries. Together, we have set a new benchmark for innovation and entrepreneurship in India.

	Fund in Focus in March

The March edition of 'Fund in Focus' series featured Ashvin Chadha, Managing Partner & Co-Founder, Anicut Capital. He throws light on how Anicut Capital prioritizes India's digital ecosystem, leveraging its vast potential while navigating challenges with a strategic, selective approach. The fund remains optimistic about India's start-up landscape despite market fluctuations, focusing on sustainable, high-growth ventures for long-term success. Read full article here.

Advocacy

IVCA has prepared a draft Guidance Note in response to SEBI's valuation circular, aligning with the IPEV framework. This document, crafted with contributions from IVCA members and technical experts, seeks to clarify valuation practices for diverse asset classes

IVCA is discussing the 'Standardised Approach to Valuation of Portfolio of AIFs' circular with SEBI, focusing on key issues such as the differences between MF and IPEV guidelines, eligibility for Independent Valuers, defining 'Material Change,'

and the audit requirements for investee companies. SEBI is reviewing these points and plans to release a consultation paper to address them, indicating a move towards regulatory clarity and efficiency. For more details, please click here.

The Ministry of Finance has issued a notification for the inclusion of a provision for partly paid-up units under rule 2, clause (aq), enhancing our regulatory framework

RBI has released a circular on March 27, 2024, titled 'Investments in Alternative Investment Funds (AIFs),' which addresses previous concerns and provides additional clarity from the circular dated December 19. However, several critical issues remain unresolved, requiring further attention and clarification from the RBI

Meetings

Meeting held with the new IRDAI Member to discuss concerns on insurance intermediaries, the impact of RBI's December 19th Circular, and requested clarification on the scope of regulation for insurance companies, and clarification on the excuse clause. Additionally, advocated for the removal of restrictions on insurers' investments in AIFs with FoF exposures

Held a meeting with the CCI Chairperson on Private Equity issues and initiated an orientation for CCI officials to enhance industry understanding

Met with DEA's Joint Secretary & Directors to address the SEBI FPI Circular and RBI's December 19, 2023, Circular on 'Investments in AIFs,' focusing on regulatory impact and easing business operations

Discussed with the Finance Minister's PS the urgent need for a notification on Partly paid units, highlighting concerns from the RBI's December 19th circular

Representations

Submission to SEBI on Circular SEBI/ HO/ AFD/ AFD – PoD – 2/ CIR/ P/ 2023/ 148 dated August 24, 2023, mandating additional disclosures by Foreign Portfolio Investors (FPIs) that fulfil certain objective criteria

Submission to SEBI on the consultation paper proposing to enhance trust in the Alternative Investment Funds (AIF) ecosystem to facilitate Ease of Doing Business measures

Responded to DEA regarding queries on restrictions, norms, and BIS compliance related to the RBI circular titled 'Investments in Alternative Investment Funds (AIFs)' dated December 19, 2023

Submission to RBI and DEA regarding the RBI Circular issued on March 27, 2024, requesting their intervention for clarifications through FAQs or other suitable methods, specifically on the following points:

1. Define 'equity shares' to include instruments such as CCPS, CCDs, convertible notes, and share warrants

2.Allow Regulated Entities to meet their capital commitments to AIFs as outlined in the March 27 Circular

3.Clarify that the December 19 Circular pertains only to direct investments by AIFs, to ensure that indirect investments through portfolio companies, which are beyond an AIF's direct visibility or control, are not inadvertently encompassed

Click here to view the complete list of advocacy submissions made by IVCA.

IVCA In News

The IVCA March news coverage was driven by our members who participated in several media stories and shared their expert comments on trends-based articles.

Some of the top stories of the month are:

	Organized a special discussion on CNBC TV-18 hosted by Nisha Poddar. India continues to shine as a beacon of optimism and opportunity in the global economy, attracting both seasoned and new investors. For this discussion, IVCA members – Neha Grover (South Asia Head of PE Funds at IFC), Srikrishna Dwaram (Partner at True North) and Sudhir Sethi (Chiratae Ventures). To watch the entire episode, click here.
	IVCA was one of the supporting partners of the Start-up Mahakumbh which took place between March 18 to 20 in New Delhi. The 'Startup Mahakumbh' featured various activities such as mentoring sessions, masterclasses, keynote addresses, and Unicorn roundtables, fostering an exchange of ideas to strengthen India's startup ecosystem. The last day of the Mahakumbh also saw PM Shri Narendra Modi deliver key-note address. For more details, read here: The Economic Times; Forbes; Hindustan Times
	After having discussed with RBI, on March 27, 2024, the RBI issued clarifications regarding its December circular on regulated entities (REs) such as non-banking financial companies (NBFCs) investing in units of alternative investment funds (AIFs) with downstream investments in debtor companies. The RBI stated that if an RE invests in an AIF, the AIF's investments should exclude equity shares of the debtor company but include other investments, including hybrid instruments. Additionally, the 100% provisioning required by the RE will only apply to the extent of investment in the AIF scheme further invested in the debtor company, not the entire investment in the AIF scheme. Siddarth Pai, Founder, 3one4 Capital & Co-Chair, Regulatory Affairs Committee, IVCA shared his thoughts on the clarification note. To read more, click here.

PE/VC Deal Tracker

Click here to view report

New Members

Introducing the new members joining our dynamic network.

View All Members

To join IVCA's dynamic network, write to:

aakriti@ivca.in

sunitha@ivca.in

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