Indian insurance companies can now invest in FoF

After the unicorn parade we saw this week, there's more reason to cheer for Indian startups, thanks to the IRDA's move to allow Indian insurance companies to invest in Funds of Funds.
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After the unicorn parade we saw this week, there's more reason to cheer for Indian startups, thanks to the IRDA's move to allow Indian insurance companies to invest in Funds of Funds

The latest IRDA move will mean greater inflow of domestic capital into the startup ecosystem and comes close on the heels of the recent decision of the government to allow private retirement funds to park certain percentage of their capital in Alternate Investment Funds (AIFs).

Indeed, experts believe the inflection point for any startup ecosystem to be when domestic institutional capital is allowed to start investing into the local ecosystem. 

"This move by the IRDA and the move by PFRDA last month shows the government's intent to accelerate institutional rupee funding to startups, which will help in economic growth and job creation," said Siddarth Pai, Founding Partner and CFO at 3one4 Capital, and Co-Chair at Regulatory Affairs Committee.

This announcement to boost domestic capital in India comes after IvyCap Ventures recently made a 22X return of Rs 330 crore after partially exiting beauty startup Purplle, marking a turning point for institutional investors in India.


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Before you go, stay inspired with… 

Siddarth M Pai, Founding Partner, 3one4 Capital

“The government has provided considerable support to many institutions in the country which has enabled them to come out with their incubators.”

Siddarth Pai, Managing Partner, 3one4 Capital


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