Investor network FAAD gets Sebi nod to launch Rs 300 crore fund Early-stage investor network FAAD on Monday said it has received Sebi‘s approval to launch a Rs 300 crore alternative investment fund (AIF). The network will build the war chest in the coming months to invest across sectors in early-stage startups with special focus on healthtech, agritech, deep tech, and cleantech space, FAAD said in a statement. “FAAD has received the approval of SEBI for a Category 1 INR 300 cr Alternative Investment Fund ,” the statement said. The angel network by FAAD was launched in 2019 which has invested over Rs 75 crore in over 60 startups across a multitude of technology sectors, with a minimum cheque size of USD 50,000 to USD 1 million. Some of the portfolio companies include Blu Smart, Battery Smart, Hesa, WCube, Cleardekho, Huviair, and Beyond Snacks, among others. While the funding winter has struck growth stage capital, FAAD said the early-stage startup investment scenario continues to look upbeat. Also read| Sebi brings framework for foreign investment in Alternative Investment Funds There is a new wave of Angels, HNIs and VCs who believe deeply in the value addition that technology-led innovation can bring to society and are always on the lookout to back entrepreneurs who can lead the disruption, FAAD Co-founder and Director Karan Verma said. “While a lot has been said about the funding winter in the startup ecosystem, when it comes to early-stage companies, the enthusiasm for capital support continues to be on the rise,” he added. FAAD claims to have over 1,600 Angels, High Networth Individuals (HNIs) and Venture Capitalists (VCs) across India, Singapore, Dubai, the US, UK and Canada in its community of investors.
However, he believes that the impact on the Indian market is going to be temporary since there could be some short-term impact on flows into Indian equity markets. But since the Indian economy is on a strong wicket and will continue to remain resilient.
“Improved fiscal situation, controlled current deficit, stable interest scenario combined with good corporate earnings should lead to limited impact on the Indian bond market and equity market too,” he added.
The midcap and smallcap indices took a bigger knock with the BSE MidCap fell 2.51%, while BSE SmallCap index dived 4.18%. According to Amnish Aggarwal, head, research, Prabhudas Lilladher, the valuations were already high and some correction was expected. “If the situation sustains as it is then further correction can’t be ruled out,” Aggarwal said.
Telecommunication and industrials indices were the top laggards with BSE Telecommunication declining 3.82%, followed by BSE Industrials falling 3.26%. JSW Steel (-2.99%), Tata Steel (-2.52%) and Tata Consultancy Services (-2.44%) were the top losers of Sensex.
Surprisingly, both foreign portfolio investors and domestic institutional investors were net buyers today. While, FPIs net bought shares worth Rs 252.25 crore, DIIs have purchased shares worth Rs 1,111.84 crore, as per provisional data from exchanges.
Calling this a “normal phenomena” Pankaj Pandey, head, research, ICICI Direct said, “I will not really give too much weight to a single day buying figure. Amid concerns of elevated interest rate and geopolitical tensions, in a typical market cycle, 8-10% correction is possible at any point in time.”
The brunt of geopolitical conflict, elevated interest rates and rising crude oil prices was also felt by other Asian- Pacific markets. Jakarta Composite Index lost 1.57% followed by Shanghai Composite Index and PSEi, which fell 1.47% and 0.89%, respectively. Nikkei and KOSPI declined 0.83% and 0.76%.