Investments

PE-VCs move to traditional sectors in hunt for stable companies as startups stumble

Nikhil Patwardhan

May 10, 2024 | 5 Min Read

In 2023, PE-VC investors pivoted towards traditional sectors offering smaller but more stable returns. This trend is anticipated to persist through 2024 even as startup funding gradually picks up after a two-year drought.

Renowned public market investor Rakesh Jhunjhunwala, often touted as India’s Warren Buffet, once emphasised the importance of startups prioritising sustainable cash flow over sky-high valuations.

“I am not interested in valuations. I am interested in businesses that will scale. I am making a business model and a cash flow model that businesses must follow. Valuations cannot be more important than my business model and sustainability,” he’d said during a media interaction.

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