'Investing In The Shovel In A Goldmine': Manish Kejriwal's Strategy Amid AI Boom

Manish Kejriwal, founder and managing partner at Kedaara Capital, said navigating the artificial intelligence boom in the world requires a strategy to hunt and invest in niche companies.

One of the more nuanced parts of Kedaara's strategy involves backing companies that enable larger technological transformations. Instead of directly pursuing high-risk AI products, Kejriwal told NDTV Profit that he believes in "investing in the shovel rather than jumping into the goldmine".

A recent example is Kedaara's controlling stake in Impetus Technologies, an unlisted company specialising in data engineering and infrastructure modernisation that are critical components for enterprise AI adoption. The private equity firm invested $350 million in Impetus Tech last year.

He noted that India still lags in AI adoption, making the enabling ecosystem a significant opportunity. The sector offers attractive market potential, strong labour arbitrage, and deep and growing technical talent pools

By focusing on data readiness solutions, Kedaara is positioning itself at the foundational layer of the AI revolution, where demand is surging globally.

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Top Focus Themes

Kejriwal outlined three major investment pillars that are guiding the firm's strategy in the evolving Indian market. These themes reflect both India's macroeconomic trajectory and the emergent sectors gaining long‑term momentum.

According to Kejriwal, financial services continue to serve as a strong proxy for the broader Indian economy. Historically, when the Indian economy grows at around 7%, the financial services sector has expanded at nearly double that pace.

Kedaara's focus within the sector is also evolving. While traditional lending businesses, such as non-banking financial companies and fintech lenders remain important, the firm is increasingly deepening its exposure to asset management companies and insurance. These offer scalable growth, more predictable income streams and diversified risk compared to pure lending-driven models.

India's status as a large consumption-led economy naturally creates opportunities for investments in companies that cater to rising household incomes and aspirations, Kejriwal said.

Healthcare has emerged as another structural theme for Kedaara. Kejriwal emphasised that the demand for healthcare and related services is accelerating beyond Tier-1 cities, driven by improving awareness, higher willingness to pay and expanding insurance coverage.

Importantly, he noted that unit economics and penetration levels play a crucial role in identifying the right opportunities in areas like diagnostics. Whether in diagnostics, specialty care, or allied services, scalability and profitability remain core evaluation metrics.

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