In India, the early-stage investment company V3 Ventures has begun operations with the support of the international, family-owned investment company Verlinvest. With a corpus of €100 million (about Rs 900 crore), V3 Ventures is able to make investments in India, Europe, and the US. According to Arjun Vaidya, co-founder of the company and investment partner, 30% of the corpus will be invested in India.

This is merely our first commitment of capital, which we intend to invest in during the next two years, he continued, adding that "we remain positive on India in the long term." Supporter of V3 Ventures Verlinvest has already made investments in Indian businesses like Byju's, Purplle.com, and Sula Vineyards. Vaidya, who established the Ayurvedic direct-to-consumer brand Dr Vaidya's in 2016, and Lopo Champalimaud, who established the Treatwell digital booking platform for the beauty industry in Europe, launched V3 Ventures.

Vaidya, who is a partner at V3 Ventures, would supervise investments in Asia and India and operate out of Mumbai. V3 Ventures' India operations were established at a time when venture capital funding for businesses in the nation as well as those headquartered outside has slowed due to central banks around the world tightening monetary policies and hiking interest rates.

While businesses are still receiving funding, Vaidya noted that deals are taking longer to close. "Excellent firms and powerful ones are still receiving funding. Over all business cycles, this is true. Deals are getting done, but it's taking a little longer. I am fundamentally bullish about India, and it appears that our economy has a lot going for it in the current macro environment. Hence, I continue to be optimistic about dealmaking for fundamentally sound companies, " he said.

On March 21, the Boston Consulting Group (BCG), Times Bridge, and TiE Delhi-NCR published a research stating that the fundraising slowdown in India, coupled with a significant quantity of unallocated dry powder, could cause investors to take a "wait-and-see" approach to late-stage firms.

In 2022, India-focused funds had $23 billion in unallocated money, the biggest amount ever. Investors will be patient with "growing and late-stage firms" in 2023, it was noted, with the emphasis being on profitability measures. The dry powder will still mostly be used for early-stage startups.