SMBC Bets on Indian Startups With $200 Million Fund as IPOs Soar

A fund co-run by the banking arm of Sumitomo Mitsui Financial Group Inc. plans to pour the bulk of the $200 million it has raised into Indian startups, betting that the country’s booming IPO market will create opportunities to cash out.

Initial public offerings in the country have exceeded $16 billion so far this year, as soaring demand from small investors adds to a wave of buying by insurers and local mutual funds. That is raising the prospect of more venture capital and private equity funds using the stock market as a venue for exits or stake reductions.

“The ability ...