The Indian Venture and Alternate Capital Association (IVCA) recently concluded its Domestic Institutional Investors (DII) and Exits Forum 2025 in New Delhi, highlighting a significant drive to strengthen India’s domestic capital framework. The event convened leading domestic allocators, policymakers, and fund managers to push for deeper homegrown participation in the country’s private markets.
Key Highlights from the Forum
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IVCA-BIRAC MoU: A Memorandum of Understanding (MoU) was signed between IVCA and BIRAC (Biotechnology Industry Research Assistance Council) to foster collaboration on capacity building, investment awareness, and strengthening India’s science and technology innovation ecosystem.
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Rs 1 Lakh Crore RDI Fund Lauded: Jitendra Singh, Union Minister of State for Science and Technology, praised the new Rs 1 lakh crore Research, Development and Innovation (RDI) Fund as a “unique and forward looking initiative.” The fund is designed to support high-risk, high-reward research in frontier technologies and catalyze government-industry-investor partnerships.
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Domestic Capital Surge: The forum underscored the dramatic growth in Alternate Investment Funds (AIFs). According to Rajat Tandon, President of IVCA, AIF commitments have grown 16 times since 2017. Crucially, domestic Limited Partners (LPs), including institutional investors and family offices, now contribute 52.7 percent of capital in Category I and Category II funds, reflecting rising confidence and maturity.
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Report Launch: A joint report by IVCA, 360 ONE Asset, and CRISIL was launched, detailing the expanding role of domestic institutions. The study revealed that commitments to AIFs have increased sharply from Rs 0.84 lakh crore in 2017 to Rs 13.49 lakh crore in 2025. The report positions the coming decade as a turning point where India’s own institutions—pension funds, insurers, banks, and family offices—will play a much larger role in financing the nation’s innovation and infrastructure needs.
This increased domestic participation is viewed as central to financing India’s next decade of deep tech, innovation, infrastructure, and long-term economic growth, positioning India to build a truly homegrown capital ecosystem.
By: Sandhya Bharti
