Matrix Partners, a U.S. based private equity firm, announced recently it had set up a $150 million fund with an Indian partner to invest in consumer-focused industries mainly in the Internet, telecommunications and media space.

Venture firm’s fund for consumer services joins a swarm of investors in India.

India has become a hotbed for private equity deals as companies across industries are seeking capital to fund growth, acquisitions and expansion. A booming stock market has added to deal making.

"The Indian economy is in a very exciting phase and Matrix Partners is looking forward to participating in the region's growth story," said Matrix founding partner Paul Ferri.

The fund will fuel multiple stages of investments into Internet, mobile services, financial services, media and entertainment companies, and travel and leisure.

Matrix had until now only invested in the United States. It joins an increasingly large group of investors in India, both domestic and foreign.

Investors said India came out ahead of China in terms of barriers to entry such as regulations, intellectual property, and political environment.

“U.S.-based venture capitalists are looking at China as a market and India as a place to fund entrepreneurs,” noted Mark Heesen, president of the Arlington, Virginia-based National Venture Capital Association.