India attracts $303 billion in private capital over five years as IVCA, KVCA deepen Korea investment ties

India's private capital ecosystem, which has attracted nearly $303 billion in private equity and venture capital investments across more than 6,000 deals over the past five years, is set to deepen its engagement with South Korea following a new partnership between the Indian Venture and Alternate Capital Association (IVCA) and the Korea Venture Capital Association (KVCA).

The two industry bodies on Thursday signed a Memorandum of Understanding (MoU) aimed at strengthening collaboration between the venture capital, private equity and alternative investment ecosystems of the two countries. The move comes as India and South Korea seek to expand economic cooperation and foster innovation-led growth through greater cross-border capital flows.

Focus on cross-border investments and market access

The MoU was signed by Rajat Tandon, President of IVCA, and Joonhee Lee, Vice Chairman of KVCA, in the presence of representatives from South Korea's Ministry of SMEs and Startups (MSS), Korea Venture Investment Corporation (KVIC), venture capital firms and other ecosystem stakeholders from both countries.

Under the agreement, IVCA and KVCA will work together to facilitate cross-border investment opportunities, support market access for their members, promote networking and ecosystem engagement, and encourage knowledge-sharing through workshops, seminars and industry dialogues. The two associations will also explore collaborative research initiatives and exchange best practices to strengthen policy engagement between the investment communities of India and South Korea.

Bilateral trade ambitions provide a strong backdrop

The partnership comes against the backdrop of expanding economic ties between the two Asian economies. Bilateral merchandise trade between India and South Korea is approaching $27 billion, with both countries working towards a target of $50 billion by 2030. Industry stakeholders believe stronger investment linkages can complement trade growth by accelerating capital flows into startups, emerging technologies and high-growth sectors.

Korean investors have already played a meaningful role in India's growth journey, backing companies across sectors such as technology, mobility, manufacturing and consumer businesses. The latest collaboration is expected to provide a more structured framework for identifying investment opportunities and fostering engagement between investors, entrepreneurs and institutions across both markets.

Alternative capital industry eyes deeper collaboration

India's growing attractiveness as an investment destination is reflected not only in capital inflows but also in robust exit activity. Investors recorded exits worth nearly $143 billion over the past five years, highlighting the increasing maturity of the country's startup and private capital ecosystem.

IVCA, which represents more than 500 funds managing assets exceeding $350 billion, said the partnership is expected to serve as a platform for fostering stronger connections between investors, startups, institutions and industry stakeholders while supporting innovation and entrepreneurship in both countries.