In a recent announcement, deep tech startups in India and South Africa will receive support from Solcon Capital and IFC. The goal of this strategic alliance is to help these two emerging markets find promising startups to invest in so that they can drive the digital economy forward.
As part of their joint venture, IFC and Solcon Capital will search for deep tech startups with potential and then invest in their growth.
This initiative will focus on critical areas like 5G, AI, the Internet of Things, big data, and cybersecurity. Together, IFC and Solcon Capital bring 20 years of expertise in building innovative deep-tech companies to the table, and their combined insights into private sector investment in emerging markets make for a powerful combination.
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Impacts of Solcon Capital and IFC partnership
According to Sarvesh Suri, IFC’s Regional Industry Director for Infrastructure and Natural Resources, Africa, the partnership combines Solcon Capital’s deep tech investment, acumen, and outstanding global investment track record with IFC’s expertise in supporting private sector growth in emerging markets.
She went on to say that this is a once-in-a-lifetime chance to make a difference by combining forces to encourage innovation and growth in the deep tech industries of India and South Africa, all within the framework of IFC’s global expansion into infrastructure.
There has never been a more explosive expansion in the deep tech industry. An important subsegment of this industry, the 5G deep structure market was worth $20.19B in 2022 and is projected to reach $348.76B by 2030, an increase of 45.2% CAGR. Similarly, experts predict that the Internet of Things (IoT) market will grow from an initial 2022 valuation of $544.38B to a final 2030 valuation of $3,352.97B, a compound annual growth rate (CAGR) of 26.1%. The increasing need for high bandwidth and the widespread adoption of cutting-edge technology have contributed to the prosperity of these areas.
New technologies, such as 5G and the Internet of Things, are having far-reaching effects on many aspects of society and the workplace. Technological progress is paving the way for more linked, efficient, and intelligent societies in many ways, including expanding access to the internet, improving healthcare, manufacturing, and retail via artificial intelligence and big data, and reshaping industrial operations.
Other things to expect
According to Pramod Venkatesh, CEO of Solcon Capital, this will undoubtedly alter the face of deep tech in South Africa and India. With the combined expertise of IFC and Solcon, which has been at the forefront of deep tech innovation for over 20 years, this partnership will help uncover and cultivate promising investment opportunities in the sector, which will, in turn, stimulate the digital economies of both countries.
Additionally, Solcon Capital Chairman Andile Ngcaba stated that the company’s goal in partnering with IFC is to facilitate cross-collaboration, leverage diverse talents and markets, and speed up the development of deep tech companies in both regions. In order to promote innovation and growth, they are devoted to cultivating a flourishing ecosystem of technology.
A new era in the development of deep tech has begun with the formation of this strategic alliance between IFC and Solcon Capital, which will pave the way for increased development, creativity, and cooperation in the South African and Indian markets.