Emerging markets: why India could soon be leading the pack

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Many investors in the UK have traditionally turned to investment opportunities close to home, with European and UK markets being the primary outlets when searching for and funding up-and-coming businesses. However, it is evident that countries outside the West are beginning to catch up in terms of start-up value – and investors are already catching wind of this, with research from JPIN showing that over 13 million investors in the UK are looking for fresh opportunities in emerging markets. With this in mind, India – one of the fastest growing economies – looks set to become the next destination for those looking to maximise their investment returns. Between April and June last year, India’s Foreign Direct Investment (FDI) equity inflow stood at US $17.6 million – this number is predicted to reach US $120-160 billion per year by 2025.

With four consecutive quarters of positive economic growth in 2021 and a projected growth of 8.5% in 2022 alone – according to the IMF – India is set to become one of the leading Tech sectors, after holding the highest FinTech adoption rate of 87% as of 2020. This will likely expand with the Indian Budget Announcement earlier this month highlighting its focus on maintaining and growing their digital sector through the introduction of digital currency, digital universities and a National Digital Health Ecosystem.

Landmark research from leading startup investment bank, JPIN, emphasises the sentiment of investors within the UK, and which industry they’re most likely to finance. The research shows that in all sectors, investors prefer to invest in emerging markets rather than the UK. Green companies were the most sought-after sectors, with almost half of investors (45%) in the UK wanting to invest in sustainable businesses in emerging markets. A further two-thirds of investors want to invest in BioTech/MedTech, while 29% were keen to invest in FinTech – this number jumping to 31% for Brits aged 18-24.

Key statistics:

35% (4,761,000) of investors want to invest in BioTech/MedTech in emerging markets
29% (4,060,000) of investors want to invest in FinTech in emerging markets
45% (6,152,000) of investors want to invest in green/sustainable companies in emerging markets
19% (2,680,000) of investors want to invest in startups in emerging markets

JPIN (https://www.jpinvcats.com/), leading investment bank between the UK and India, have worked with various Unicorns as well as some of the major key players in the MedTech, FinTech and GreenTech arena, with a key desire to not only invest in the future of emerging markets, but to bridge the gap between investment opportunities in the UK and India, ultimately bringing two of the world’s most prominent startup ecosystems together.

Gaurav Singh, founder of JPIN, comments:

“Investment opportunities in the emerging market look set to be popular in the next few years, and while India is still somewhat behind other incumbents like China in terms of value, last year’s growth in their startup ecosystem shows true promise. At JPIN we are always looking to back the next generation of startups and businesses looking to change the world: the success of Indian startups that have been noticeably prevalent in the last year especially, is something truly exciting for us, and I can’t wait to see what’s yet to come.”