What does Nikhil Kamath think about venture capital funding in today’s world?


Q: What do you think really made True Beacon and Zerodha successful?

Answer :

>The industries were ripe for a change when True Beacon and Zerodha were founded

>Industries were ripe for a change when True Beacon and Zerodha were foundedIndustries were ripe for a change when True Beacon and Zerodha were founded

Q: In the startup world, your startups stand out because you chose to start and then focused on positive cash flow. What advice would you give to entrepreneurs considering starting their own startup?

Answer :

>Consider what the market is willing to give at that time

>In an era of high inflation and rising interest rates, raising capital is going to be more difficult than five to ten years ago

>Companies must focus on profitability

Q: Recently, we have seen that investors are becoming more cautious about investing in startups. The markets also did not react very positively to the IPOs of several startups. How do you see the future of fintech in India?

Answer :

>Penetration levels remaining low, fintechs continue to be an opportunity

> Barely 2% of India has access to stock markets

>In the medium to long term, the number of people using fintech products will increase

Q: In this, how do you see the role of Bharat – rural India?

Answer :

>As India’s GDP per capita grows, most of the growth will come from rural India

> I hope India will not follow the Chinese way of urbanization

> Expect backward immigration to rural economies in the future

Q: We have seen that inflation in India has been quite high over the past few quarters. How do you think this will impact the markets in the coming days? Have the markets already taken this into account? How do you think the markets will behave in the near future?

Answer :

>When inflation peaks, it is not a phenomenon of one or two quarters, but lasts for years

>Inflation should remain elevated for some time now. Interest rates will rise

> If interest rates remain high and continue on the current trajectory, this will have a significant impact on the country’s consumption, and consequently on the stock market

Q: Recently, Sebi introduced this mechanism called ASBA, where funds are blocked in an IPO candidate’s account. Do you think this will have a positive impact on future IPOs?

Answer :

> I don’t know if the application of Sebi supported by an blocked amount (ASBA) can have a positive impact

>With ASBA, the amount available for IPOs will drop

>IPOs should not be the dumping ground for early stage investors, PEs, VCs, foreign investors, developers, etc.

>More opportunities and valuations should be provided for retail investors to participate

Q: Where do you think the next wave of retail investment innovation will come from? Which sectors do you think will be at the forefront?

Answer :

>Expect a list of more innovative companies on the stock exchanges

> Expects to see more innovative tech companies than just services play

>Climate technologies will become a major sector in the next 10 to 20 years, such as geo-engineering and companies that help mitigate climate change, etc.


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