| | | Capital Call | | February 2025 | |
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 | IVCA's Advocacy Impact: Policy Wins In Budget 2025
The Union Budget 2025-26 delivers critical policy reforms, aligning with IVCA’s advocacy efforts to enhance tax clarity, reduce compliance burdens, and boost capital flows in the alternate capital industry.
Amendment to Definition of 'Capital Assets' - Enhanced Tax Clarity for Investment Funds - Securities held by Category I & II AIFs are now classified as capital assets under Section 2(14).
- Ensures that all gains from securities sales are treated as "Capital Gains" and not "Business Income."
- Brings Indian AIFs on par with FPIs, who received this treatment in 2014, ensuring greater tax certainty for AIF income.
- Clarity for Debt Funds on income classification, ensuring consistency in tax treatment and reducing uncertainty.
TCS Reform - Tax Collected at Source (TCS) Removed - Section 206C(1h) has been removed from April 1, 2025.
- AIFs and funds will no longer be subject to TCS collections, addressing a long-standing industry demand.
New ₹10,000 Crore Fund of Funds for Startups with provision for a Deeptech Fund of Fund - The existing 10,000 crore Fund of Funds for Startups (FFS) has already mobilised funds.
- A new ₹10,000 crore Fund of Funds has been announced to further increase rupee capital participation and accelerate entrepreneurship.
- A significant step towards unlocking domestic pools of capital for cutting-edge innovation.
Sovereign Wealth Fund & Pension Fund Investment Exemptions Extended - Investment period extended from March 31, 2025, to March 31, 2030, allowing more time for global institutional investors to claim exemptions.
- Clarification that capital gains from unlisted debt securities-deemed short-term-will now be considered as long-term capital gains for exemption under Section 10(23FE).
Withholding Tax Rate Alignment for Securitization Trust Payments - The withholding tax rate on payments made by Securitization Trusts have been reduced from existing 25% / 30% to 10%.
Amendment of Section 10 - Exempt Income of Non-Residents (IFSC) - The proposed amendment incentivizes non-residents to enter into Over- the-Counter (OTC) derivatives and Offshore Derivatives Instruments (ODI) with Foreign Portfolio Investors being units in IFSC, rather than offshore jurisdictions.
- By providing tax exemptions on income derived from these activities, IFSC becomes a more attractive location for international financial institutions and market participants.
- This measure is expected to increase business activity in IFSC, particularly in the derivatives and financial instruments sectors, further strengthening India's position as a competitive global financial hub.
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 | IVCA Conclave 2025: Gearing Up for a High-Impact Gathering With over 600 registrations and 100+ speakers, including key government dignitaries, IVCA Conclave 2025 is set to bring together key stakeholders from the alternate investment ecosystem. The agenda includes 13 panel discussions, covering private equity, venture capital, credit, real assets, and policy frameworks, along with a masterclass by Cooley & NDA and the launch of industry reports by EY, Khaitan & Co. & Praxis offering data-driven insights into investment trends. The Conclave will also see strong media participation, with several leading publications confirming their presence. The Gala Dinner on March 11th will provide an opportunity for industry leaders to engage in high-level networking and discussions.
Latest updates: www.ivcaconclave.com
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 | IVCA Post-Budget Insights Webinar: Key Takeaways on Union Budget 2025-26 IVCA hosted the Post-Budget Insights Webinar providing a comprehensive analysis of the Union Budget 2025-26 and its impact on the alternate asset industry. Featuring Subramanian Krishnan (EY), Tushar Sachade (PwC & Co LLP), and Siddharth Shah (Khaitan & Co.), the session offered expert perspectives on key budget announcements, policy shifts, and their implications for investors and fund managers.
The discussion covered budget hits and misses, sector-specific insights, and regulatory considerations, helping industry stakeholders navigate the evolving investment landscape.
Watch the full session here: View Webinar | |
 | IVCA Partners with Startup Mahakumbh 2025 IVCA has partnered with Startup Mahakumbh 2025, joining hands with FICCI, ASSOCHAM, and Bootstrap Foundation to support India's dynamic startup ecosystem. This collaboration aims to enhance investment engagement, strategic funding initiatives, and industry dialogues, strengthening the bridge between startups, investors, policymakers, and industry leaders.
Scheduled for April 3-5, 2025, at Bharat Mandapam, New Delhi, Startup Mahakumbh 2025 builds on the success of its inaugural edition, which featured 1,300+ exhibitors, 48,000+ business visitors, 5,000+ delegates, and 200+ investors. Themed “Startup India @ 2047 – Unfolding the Bharat Story,” this edition will focus on shaping India's innovation landscape and fostering long-term economic growth as the country moves toward Viksit Bharat by 2047.
With 3,000+ exhibiting startups, 1,000+ investors, and 50+ country delegations, Startup Mahakumbh 2025 will serve as a key platform for investment, policy discussions, and cross-sector collaborations.
For more details, visit: www.startupmahakumbh.org | |
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 | IVCA-Ardent Report: Mapping India's Venture Capital Landscape The IVCA-Ardent report provides a comprehensive analysis of India’s venture capital (VC) ecosystem, capturing key trends and investment shifts shaping the market in 2024. Despite a cautious global investment climate, the report highlights the continued capital inflow into Indian startups and the growth trajectory of venture capital investments.
The report also delves into sectoral focus areas, identifying industries that are attracting increased investor interest and emerging trends that are shaping the future of venture capital in India.
A must-read for investors, entrepreneurs, and industry stakeholders, the IVCA-Ardent report offers data-driven insights and a forward-looking perspective on opportunities in the coming year.
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 | IVCA Air Quality Working Group: Driving Action on Delhi’s Air Pollution Crisis As part of IVCA’s Climate and Sustainability Council initiatives, the IVCA Air Quality Working Group has been established to address Delhi’s air pollution crisis through strategic collaboration, innovation, and partnerships.
The inaugural meeting brought together key industry leaders to define the group’s charter and framework. The working group will focus on identifying challenges and solutions, deploying clean air technologies, developing innovative financing models, advocating for policy reforms, and driving public awareness and engagement to implement scalable air quality solutions.
Working Group Members: The IVCA Air Quality Working Group comprises prominent leaders from investment, policy, and sustainability sectors, including: - Ashok Emani – NIIF
- Harkesh Dabas – William J. Clinton Foundation
- Harsh Singhal – Prosperete
- Himanshu Sikka – IPE Global
- Kartikeya Desai – Desai & Associates
- Kunal Khattar – Advantedge
- Laurent Gonnet – World Bank
- Mohit Dhawan – Hero Enterprises
- Nithai Utkarsh – Hero MotoCorp
- Padmaja Ruparel – Indian Angel Network
- Pratibha Jain – Eversource Group
- Priya Shah – Theia Ventures
- Rahul Agarwal – Quadria Capital
- Ruchira Shukla – Synapses
- Samir Shah – Peak Sustainability
- Shailesh Vickram Singh – Climate Angels Fund
- Shalabh Tandon – IFC
- Tushar Arora – World Bank
- Venkant Bhargav Sreedhara – World Bank
- Gautam Chakraborty – USAID
The group aims to leverage expertise, mobilize resources, and advocate for scalable clean air solutions, contributing to long-term improvements in Delhi’s air quality. | |
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 | IVCA, Winpe & Praxis Launch Study on Gender Inclusion in PEVC IVCA, in collaboration with Winpe and Praxis, is developing a research report titled "Equity in Equity: Gender Inclusion in PEVC." The study aims to assess the state of diversity, equity, and inclusion (DEI) in India’s private equity and venture capital sector, track progress, and identify opportunities for fostering greater participation of women across the ecosystem.
A key part of this initiative involves gathering insights from the investing community on women’s representation, sectoral challenges, and evolving trends in PEVC. To capture a comprehensive industry perspective, a survey has been launched to collect inputs from Limited Partners, Fund Managers, Women Professionals, and Women Founders.
The findings will be aggregated and analyzed to highlight key barriers, progress made, and actionable recommendations for enhancing gender diversity in the industry. If you have not yet taken the survey, we encourage you to do so to ensure your perspectives are represented. The survey remains anonymous, ensuring a candid and data-driven assessment.
Access the survey here.
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 | IVCA-Apple Roundtable IVCA hosted a roundtable with Apple’s global stakeholders to discuss key startup and venture capital initiatives undertaken by Apple. The session provided insights into Apple’s engagement with the startup ecosystem, highlighting strategic programs and support mechanisms for early-stage companies. Additionally, the discussion covered Apple's technology stack, offering an overview of tools, frameworks, and resources available to startups leveraging Apple's ecosystem.
IVCA members present at the discussion included: - Ashley Menezes (Partner and COO, ChrysCapital, and IVCA Chairperson)
- Mudit Narain (Vice President, Investments, Blume Ventures),
- Ashish Kumar (General Partner, Fundamentum),
- Vivek Chhachhi (Managing Partner, CX Partners),
- Shiva Shankar (Partner, Ankur Capital), and
- Ruchira Shukla (Co-founder, Synapses.vc).
Representing Apple were: - Mark Rogers (Vice President, Europe, WW Enterprise & Education),
- Stéphane Thirion (Enterprise Senior Director, EMEIA), and
- Sudhir Nayar (Enterprise Business Head, India).
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 | TiE Delhi-NCR: Capital Connect 2025 IVCA collaborated with TiE Delhi-NCR for Capital Connect 2025, a premier platform designed to bring together global and domestic investors to explore India’s expanding investment landscape. Tailored for institutional investors, venture capitalists, family offices, HNIs, policymakers, and industry leaders, the event facilitated discussions on high-growth sectors, regulatory navigation, and market entry strategies.
Through curated dialogues, one-on-one engagements, and networking sessions, attendees gained insights into India's evolving investment climate, regulatory framework, and strategic opportunities for capital deployment. | |
 | IVCA Fund in Focus This month IVCA Fund in Focus featured Mehekka Oberoi, Fund Manager, Fintech IIFL (India Infoline Group), she opined how IIFL Fintech Fund - India’s premier early-stage fintech-focused fund, spearheads innovation in financial services by supporting startups driving financial inclusion and digital transformation. With a robust portfolio attracting over $100M in follow-on funding and a strong track record of successful exits, IIFL leverages its conglomerate ecosystem to empower fintech and SaaS platforms. The fund aligns with IIFL Group’s vision to lead technological advancements, bridging gaps in domestic credit and insurance penetration while fuelling India's digital growth story.
To read full interview, click here | |
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|  | | SEBI: Adopted the implementation standards for SEBI circular on ‘Pro-rata and pari-passu rights of investors of AIFs’, which was submitted through SFA. IVCA has updated the implementation standards on its website w.r.t offering of differential rights by AIFs to certain investors https://www.ivca.in/sebiupdates/pro-rata | |
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| |  | | Meetings: - Pre-Budget Consultations: IVCA was invited to a Pre-Budget Consultation chaired by the Hon’ble Finance Minister. The following points were presented:
- Taxation of carried interest and GST notices.
- Suggestions for unlocking domestic pools of capital.
- Proposed changes to LLP structures for AIFs.
- Tax recommendations
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 | | Post-Pre-Budget Meeting: Following the consultation, the Department of Economic Affairs (DEA) convened a meeting to discuss challenges related to AIFs structured as LLPs. | |
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| |  | | SIDBI: The Investor Connect Event, organized by SIDBI and Startup India, brought together key stakeholders of the ₹10,000 crore Fund of Funds for Startups (FFS).The event reviewed FFS’s impact over eight years and explored strategies for future growth. Discussions focused on achievements, challenges, and enhancing capital flow to high-potential ventures. IVCA proposed the establishment of additional FoFs in the following areas: - Manufacturing Sector
- Deep-Tech Sector
- Sunrise Sector
- Secondaries Funds
- Venture/Private Debt/Credit
- Late-Stage Investments
- Co-Investment Opportunities
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 | | MeitY: Discussion on the structure of the Deep Tech Fund of Fund and the launch of India Semicon Mission 2.0. IVCA has submitted a detailed paper recommending the structures of both these funds. | |
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| |  | | DPIIT: Suggestions to Boost FDI & Ease of Doing Business The stakeholder consultation, chaired by the Secretary, DPIIT, brought together representatives from PE, VC firms, Pension Funds, and key Industry Associations to discuss policy and regulatory reforms aimed at attracting long-term capital and enhancing the Ease of Doing Business in India. The agenda focused on measures to attract FDI. IVCA presented following recommendations FDI-Related Recommendations: - Press Note 3 (PN3) Note
- FPI Disclosure Norms
- Minority Acquisition Exemption
- Deal Value Threshold (DVT) Test
- Overseas Direct Investments (ODI)
- Foreign Investment in LLPs operating in the Cash & Carry Wholesale Trading (WT) sector
- Leveraging Invest India for FDI promotion
Ease of Doing Business (EODB) Recommendations: - Alignment of FEMA and Company Law
- PN3 Note
- Deferred Consideration
- Simplification of MCA Filings
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|  | | RBI Foreign Exchange Department: PPU Regularisation - Compounding Issue Following the meeting, IVCA conducted a survey to gather feedback on the presence of partly paid units (PPUs) in fund structures and any challenges faced in their regularisation and the filing of Form INVI. Based on the responses received, submitted a revised proposal on the compounding fee. | |
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| |  | | MSME: Discussion on Inclusion of Private Credit/Debt funds as daughter funds for the SRI Fund. MSME has requested success stories of MSMEs supported by private credit, showcasing their subsequent growth or success. IVCA is in process of collating this information for submission. | |
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|  | | RBI: Submission of following: - AIFs need support of domestic pools of capital, mainly banks ( RBI concerns on evergreening of stressed assets via AIFs)
- Overseas Investment Limit for AIFs
- Regularization of Partly Paid Units of AIFs
- Excluding AIFs from the BUDA & BULA Act
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| |  | | DEA, SEBI: Excluding AIFs from the BUDA & BULA Act. (Amendments Sought By Industry To The Banning Of Unregulated Deposit Schemes Act, 2019) | |
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|  | | DEA: Illustrations to explain the compounding fee and its impact on fund managers due to the compounding of partly paid units (PPUs) |
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| |  | | DPIIT: Seeking clarification in relation to the permissibility of foreign investment in an LLP operating in WT sector under the automatic route. |
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|  | | SEBI: Submission to include various suggestions made earlier to be discussed in AIPAC meeting: - Proposal for Regulatory Overhaul of AIF regulations
- Grandfathering experience for NISM Certification for Fund Managers
- Relaxation from Compliance with Cybersecurity Circular.
- Increase in Leverage of Category III Funds
- Sub-Categorisation of Category III Funds
- Suggestions on the Accredited Investor Framework
- Impact on investment restriction of credit funds because of change in listing requirements of debt securities
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| | | | Click here to view the complete list of advocacy submissions made by IVCA. | |
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| |  | The IVCA's January news coverage was driven by our members, who contributed expert insights to several media stories and trend-based articles.
Some of the top stories of the month are: | |
|  | As Startup India marks its ninth year, industry leaders reflect on the evolution of India's startup landscape—from disruptors to key drivers of economic growth and innovation. While government initiatives and digital connectivity have fueled progress, challenges like digital adoption and customer experience remain. IVCA President Rajat Tandon emphasized the importance of collaboration and a strong support system to sustain this momentum. Read more on how startups are shaping India's future. To read more, click here. |  | In a special episode of ET Now Startup Central, Gopal Jain (Gaja Capital & IVCA) and Prashanth Prakash (Accel India) shared key priorities for India’s alternate capital industry. Their wishlist includes a favorable taxation framework, urging policymakers to align carried interest taxation with global standards to attract fund managers. They also emphasized unlocking domestic capital and enabling pension and provident funds to co-invest in alternative assets, strengthening India’s investment ecosystem. To watch the full discussion, click here. |  | In a Businessworld opinion piece, Rajat Tandon, President, IVCA, highlights how alternate capital—driven by AIFs—has been pivotal in India's economic rise. With over $325 billion invested in six years, the sector has fueled innovation, job creation, and FDI. Ahead of Budget 2025, he calls for progressive reforms, including unlocking domestic capital through pension and insurance funds, aligning taxation on carried interest with global norms, and expanding fund-of-funds initiatives to boost emerging sectors. To read the full article, click here. |
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| | New Members Introducing the new members joining our dynamic network. | |
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| | To join IVCA's dynamic network, write to: | |
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| | | © 2025 IVC Association. IVC Association, Office No. 7 and 13, 1st Floor, Innov8 Coworking Space, Old Fort Saket, District Centre, South Delhi, New Delhi - 110017 |
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