• Startup ecosystem funding: The current Indian startup landscape offers fertile conditions with abundant private capital alternatives, unlike earlier eras when public market listings were the sole funding route for scaling businesses.
• Hexaware and Aptech scaling: Founded in 1985 and 1990 respectively, Aptech and Hexaware were built by continuously reinvesting cash flows, with Hexaware entering the US software export market when total Indian exports were under $100 million.
• AI industry disruption: Artificial intelligence is driving a structural reset across the Indian IT sector, threatening traditional revenue streams such as coding, testing, and maintenance that can constitute over 50% of revenue. The industry's operating model will shift from headcount-based billing to specialized AI expertise.
• Digital sector outlook: Tech-enabled and digital companies that experienced steep valuation corrections offer attractive return potential for patient investors. Following recent underperformance relative to other emerging markets, Indian equities are poised for solid valuation growth over the next one to two years.