Tech Explained: Bertelsmann India Investments Targets AI and Tech-Enabled Expansion in 2026, Emphasizing Patient Capital in Simple Terms

BII’s 2025 Performance and 2026 Strategic Outlook

Bertelsmann India Investments (BII) reported a period of notable activity in 2025, marked by investments in nine new companies across diverse sectors. The firm maintained a disciplined investment approach, concentrating on businesses with sound operating fundamentals and founders with a long-term perspective. This strategy is exemplified by its backing of companies such as Snabbit, Tetr, and Handpickd, as well as Inito, which operates at the intersection of consumer health and data-driven insights. BII also expressed continued support for established platforms like Shiprocket as they advance towards potential public market listings.

2026 Investment Focus and Thesis

Looking ahead to 2026, BII intends to sustain its core investment philosophy, focusing on underwriting deals based on fundamental strength and allocating capital for high-conviction follow-on investments in its portfolio. A key strategic area for the upcoming year is artificial intelligence, with a particular emphasis on AI application layers. While BII maintains a sector-agnostic stance, it is dedicating considerable attention to technology and tech-enabled business models where operational execution fosters compounding growth. Sectors of interest include healthtech, fintech, edtech, logistics, and select consumer technology ventures that demonstrate the potential for building durable competitive advantages within the Indian market.

BII’s investment thesis centers on identifying and supporting robust, defensible businesses. The firm positions itself as patient capital, committed to partnering with founders over an extended period to foster category leadership. Initial investments typically range from $5 million to $15 million, with provisions for flexibility in special circumstances. Over the lifecycle of an investment, BII can deploy up to $40 million, underscoring its long-term, conviction-driven commitment.

Market Trends and Exit Pathways

Pankaj Makkar, managing director at BII, anticipates an increase in startup IPOs in 2026, noting that companies like Shiprocket are preparing for public listings, and the market appears more receptive to scaled entities with strong governance. Beyond initial public offerings, BII views strategic mergers and acquisitions (M&A) and secondary transactions as the most viable exit pathways for 2026-27. As market categories mature, strategic buyers are expected to acquire capabilities and market share, while secondary sales are anticipated to grow as investment portfolios age. The firm also observes a trend towards verticalized AI solutions tailored for specific industries and use cases, driven by proprietary workflows, distribution networks, and data advantages. Furthermore, a new cohort of Indian businesses is increasingly exploring opportunities beyond the domestic market.

Note: Fundamental data (Stream 1), Regulatory filings (Stream 2), and Live Market data (Stream 3) were not provided for this report. Information was synthesized from Source A, Source B, and simulated Google Searches for verification and context.