prasad1
Active member
The phenomenal growth of India’s much-celebrated tech startup ecosystem, which is now the third-largest in the world, could be stunted if Chinese funding into the country slows in the aftermath of the military escalations on the border this week, experts believe.
“Chinese investors have been making their presence stronger in the Indian startup ecosystem since (the) last few years, which also enabled these startups to scale up successfully,” said Aurojyoti Bose, lead analyst at GlobalData. Now such companies “are in a state of uncertainty for capital raising.”
China-made money
Last year, Chinese investors put a whopping $3.9 billion (Rs29,729 crore) into Indian startups—nearly double the $2 billion in 2018. Over 90 Indian startups received Chinese funding in 2019.
Eighteen of the 30 Indian unicorns are backed by Chinese investors, a Gateway House report (pdf) noted, adding that “China is embedded in Indian society, the economy, and the technology ecosystem that influences it.”
Besides the money, Chinese investors like Alibaba and Tencent, bring to the table their experience of scaling businesses, which is a challenge for Indian entrepreneurs as the internet economy in the country is still nascent.
They “offer practical advice to scale business mostly having done that in the Chinese market,” Joshi said. “They are aggressive in their risk-taking and can push the firm to drive scale quickly.”
“Chinese investors have been making their presence stronger in the Indian startup ecosystem since (the) last few years, which also enabled these startups to scale up successfully,” said Aurojyoti Bose, lead analyst at GlobalData. Now such companies “are in a state of uncertainty for capital raising.”
China-made money
Last year, Chinese investors put a whopping $3.9 billion (Rs29,729 crore) into Indian startups—nearly double the $2 billion in 2018. Over 90 Indian startups received Chinese funding in 2019.
Eighteen of the 30 Indian unicorns are backed by Chinese investors, a Gateway House report (pdf) noted, adding that “China is embedded in Indian society, the economy, and the technology ecosystem that influences it.”
Besides the money, Chinese investors like Alibaba and Tencent, bring to the table their experience of scaling businesses, which is a challenge for Indian entrepreneurs as the internet economy in the country is still nascent.
They “offer practical advice to scale business mostly having done that in the Chinese market,” Joshi said. “They are aggressive in their risk-taking and can push the firm to drive scale quickly.”
