Leading venture capital and private equity investors at an NTT Data roundtable in Mumbai highlighted how the quality and readiness of enterprise resource planning (ERP) systems are becoming critical variables underpinning investment confidence and deal pricing in India.
- ERP system maturity is shaping investor confidence and deal valuations.
- Data quality and process robustness are priced governance variables.
- ERP readiness increasingly impacts deal structures and portfolio oversight.
What happened
At a recent business roundtable hosted by NTT Data Business Solutions India, senior venture capitalists and private equity investors discussed how ERP system maturity and AI adoption are newly significant to their investment assessments. They detailed how well-established enterprise resource planning platforms, such as SAP, bring vital transparency to company data and underlying processes, thereby influencing investor confidence and deal pricing.
NTT Data’s Managing Director, Krunal Patel, shared experiences revealing that inadequate due diligence on ERP processes has led to mispriced deals. The discussion highlighted cases where companies with underdeveloped ERP systems struggled to provide granular financial visibility critical to investors, resulting in conditional funding tied to improving operational readiness.
Why it matters
As Indian investors increasingly integrate environmental, social, and governance (ESG) considerations into deal valuations, ERP maturity is emerging as the next pivotal governance variable. This shift reflects a broader recognition that sustainable growth depends not just on top-line potential but on the reliability and integrity of the data supporting financial performance.
For family-run or legacy businesses seeking institutional capital, the presence and quality of ERP systems have become early litmus tests for investment readiness. The robustness of a company’s processes and data influences willingness to invest and affects deal terms, marking a move toward technology-enabled governance that runs from deal origination through exit.
What to watch next
Portfolio companies and prospective targets in India will need to accelerate their ERP transformations to meet growing investor demands for data granularity, process transparency, and system integration. Stakeholders should expect ERP assessment and continuous technology governance to become standard pillars of deal diligence and ongoing investor oversight.
Investors and technology partners like NTT Data are likely to deepen their collaboration across deal lifecycles, embedding ERP improvement initiatives as part of value creation plans. Watch for emerging deal structures that condition capital deployment on ERP readiness milestones and increased use of automated tools for real-time governance.