In a significant signal of confidence for the Indian startup ecosystem, London-based global asset manager Schroders Capital has announced plans to substantially increase its investment pace in the country. This strategic move builds upon a formidable foundation of approximately $1 billion deployed over the last decade through a mix of primary fund commitments, secondary transactions, and direct co-investments. For founders and venture funds alike, this deepening commitment from a sophisticated global player signifies not just the availability of more capital, but a validation of India’s maturing market dynamics, resilient valuations, and expanding pathways to liquidity beyond the traditional IPO route.
The decision to ramp up comes at a pivotal moment. While global venture capital activity has seen recalibration, India has emerged as a key beneficiary of a geographic reset in capital allocation. Schroders Capital’s public affirmation of this trend, highlighting India as receiving the “lion’s share of deployment in Asia” in recent years, underscores the country’s ascent as a primary destination for private market investment. This infusion of capital is poised to energize a market that is increasingly rewarding disciplined growth, clear profitability, and robust corporate governance.
About Schroders Capital: A Global Private Markets Powerhouse
Schroders Capital is the private markets investment division of Schroders plc, a global asset management firm with a history stretching back over two centuries. Managing a vast pool of capital across private equity, private debt, real estate, and infrastructure, Schroders Capital operates with a long-term perspective, seeking value in less liquid, privately held assets. The firm’s approach is multi-faceted, engaging in everything from backing emerging venture capital fund managers to executing complex secondary portfolio sales and co-investing directly alongside its trusted partners into high-growth companies.
In India, the firm has been an active, albeit often quiet, participant for nearly two decades. Its strategy has been one of careful partnership, typically backing small to mid-cap funds with corpus sizes ranging from $200 million to $1.5 billion. This allows Schroders to gain diversified exposure to the most promising segments of the Indian economy through managers with deep, on-the-ground expertise. The firm has demonstrated its conviction through investments in category-defining companies like omnichannel eyewear retailer Lenskart and agritech platform Agrostar, showcasing a thesis that spans both consumer brands and technology-led disruption in traditional sectors.
Leading this charge in the region is Ankita Baheti, Co-Head of Private Equity Investments in Asia. Her commentary reflects a nuanced understanding of the market’s evolution, emphasizing a shift from growth-at-all-costs to a more sustainable, fundamentals-driven investment philosophy.
The Investment Mandate: A Deeper Dive into the Strategy
Schroders Capital’s plan is not a single fundraise but a strategic directive to increase its capital deployment in India. The firm has already invested approximately $1 billion over the past ten years, a substantial sum that has been channeled through a combination of strategies.
“Over the last few years, India has seen the lion’s share of deployment in Asia on the back of a geographic reset and we will continue to see a good ramp-up and a steady pace of investments in the country,” Ankita Baheti stated, signaling a clear intent to accelerate this momentum.
The firm’s typical ticket size averages around $50 million, a figure that includes both its commitment to a fund and any associated co-investments made alongside that fund. This hybrid approach allows Schroders to not only back promising fund managers but also to double down on their most successful portfolio companies, gaining direct exposure to breakout winners.
A key element of their Indian strategy is the strategic collaboration being evaluated with Axis Asset Management Company (Axis AMC), in which Schroders holds a 25% stake. This partnership could provide unparalleled access to local market intelligence, deal flow, and distribution channels, creating a powerful synergy between a global investment giant and a domestic financial powerhouse.
Use of Capital: Targeting India’s Next Wave of Growth
The fresh wave of capital from Schroders will be directed towards sectors that are at the forefront of India’s economic transformation. The firm has explicitly identified four key areas of focus:
- Consumer: With a rising middle class and increasing discretionary spending, the Indian consumer story remains one of the most compelling globally. Schroders will look for brands and platforms that are capturing this demographic shift.
- Healthcare: From diagnostics and hospitals to health-tech and pharmaceuticals, the healthcare sector presents vast opportunities for technology-led efficiency and improved access.
- Technology: This broad category encompasses everything from enterprise SaaS to fintech and deep-tech innovations where Indian companies are building for both domestic and global markets.
- Artificial Intelligence: Recognizing AI as a foundational layer for future growth, Schroders is actively scouting for companies that are applying AI to solve complex problems across various industries.
While the firm expresses a preference for sector-specialized funds, it remains flexible, making exceptions for generalist funds with exceptional track records. This pragmatic approach ensures they don’t miss out on top-quartile fund managers, regardless of their stated thesis.
Market Opportunity: Why India, Why Now?
Schroders Capital’s decision to double down on India is rooted in a clear-eyed analysis of the current market landscape. Several factors make India a uniquely attractive destination for private capital today.
First is the resilience of valuations. While other global markets have experienced sharp corrections, Baheti notes that Indian valuations have held up relatively well. This is not seen as a sign of overheating but rather a reflection of the country’s strong GDP growth forecasts and the increasing depth of domestic capital, which provides a stable floor for valuations. Investors are, however, becoming more selective. High-quality businesses with proven unit economics, a clear path to profitability, and high standards of corporate governance are commanding a premium, a trend that signals a healthy market maturation.
Second is the rise of the secondary market. For years, the primary exit route for venture-backed companies in India was either an IPO or a strategic sale. However, recent volatility in public markets has delayed the listing plans of many mature startups. This has created a burgeoning opportunity for secondary transactions, where existing investors (like early-stage VCs and angel investors) can sell their stakes to new investors (like Schroders Capital). This provides crucial liquidity to early backers, allowing them to return capital to their own investors (LPs) and recycle it into new ventures. Schroders is actively pursuing direct secondary deals and larger portfolio sales from GPs, positioning itself as a vital liquidity provider in the ecosystem.
This trend is supported by hard data. In the past year, private equity and venture capital exits surged to $32.9 billion, the second-highest level on record. While IPOs remain a significant component, strategic exits and secondary sales are growing in prominence, creating a more flexible and robust ecosystem for capital rotation.
What’s Next: A Disciplined and Long-Term Approach
Looking ahead, Schroders Capital’s strategy in India will be defined by discipline and partnership. The firm is not chasing fleeting trends but is focused on backing sustainable businesses and the fund managers who can identify them. The emphasis has shifted decisively from top-line growth at any cost to cash flow visibility and sound unit economics.
The potential deepening of its alliance with Axis AMC will be a key development to watch. Such a collaboration could unlock new products and investment vehicles tailored for the Indian market, further integrating Schroders into the fabric of the local financial ecosystem.
For Indian startups, the message is clear: global capital is not just available, but it is becoming more sophisticated. The investors writing the cheques now are looking for more than just a compelling story. They demand operational excellence, financial discipline, and a credible path to an exit. For the companies that can meet this high bar, the commitment from institutions like Schroders Capital represents an extraordinary opportunity to build enduring, category-defining enterprises with the backing of patient, long-term capital.
