More Chinese Companies To Invest In Indian Start-Ups

CIOReviewIndia Team | Tuesday, 28 January 2020, 14:02 IST

More Chinese Companies To Invest In Indian Start-UpsThe market is at downfall for technology investment in Asia’s economy, more and more new China-domiciled corporations, venture funds and family offices are vigorously stepping towards collaborating with Indian Start-ups as they are desperately looking to move beyond the slow paced market.

“The heightened interest in early-to-growth-stage Indian firms coincides with fewer Chinese start-ups going public, uncertainty caused by the country’s ongoing trade war with US and overall sobering of valuations after the WeWork debacle”, said multiple founders and start-up investors.

Some of the companies are looking for new investors for deals such as Boyu Capital, Horizon China, Sinovation Ventures, Legend Capital, Zhen Funds, XVC Capital and Integrated Capital.

Boyu Capital, Horizons China, Sinovation Ventures, Legend Capital, ZhenFund, XVC Capital and Integrated Capital are among the new funds scouting for deals, people who have engaged with these companies. 

Corporate venture capitalists such as “Jingdong, Kunlun, Ping An and, which have been evaluating India from the sidelines, are also looking at the country as a top investment market beyond China”, said one of the persons.

As we all are sure that Indian market is not a newly discovered market for Chinese companies to invest. Companies like Alibaba’s Alipay to Didi Chuxing, Xiaomi and Tencent, are well mixed up with start-ups in India. Now, investment activities are being accelerated by some of the early entrants in the market like CDH Investments, BAce Capital, Qiming Venture Partners, Morningside Ventures, Fosun, Hillhouse Capital, GGV Capital and Meituan.

A previous report by Economic Times say that Chinese companies have doubled their investment in Indian start-ups from USD 2 billion in 2018 to USD 3.9 billion in the year 2019.

“These investors have seen a similar bull cycle play out in China 5-8 years ago, and believe that India is now at an inflection point with enormous potential for technology and consumer investing,” said Pratik Poddar, principal at Nexus Venture Partners, an early-stage fund.

Qiming came in collaboration with Pratilipi, GGV backed up KhataBook and Udaan, and CDH invested in Cashify and GlowRoad.

“Some funds and corporate VCs have tasted success in fintech, social commerce, gaming and content businesses in China, and want to leverage those learning and take a similar path in India,” said Ashish Sharma, CEO at venture debt fund InnoVen Capital India. “However, even with this exposure, their India allocation is quite small compared with the overall corpus,” he added.

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