Chinese investment in indian startups: India-China relations have deteriorated significantly after the Ladakh incident. The public is demanding the ban of Chinese goods and companies and the government’s focus is on reducing dependence on China. The Modi government is raising the slogan of self-reliant India. In such a situation a data has come about which it has become necessary for the government to think seriously.
Chinese investment accelerates 12 times
Chinese investment in the country’s startups increased 12-fold in the last four years and in 2019 it increased to $ 4.6 billion (close to Rs 35 thousand crore). It was $ 381 million in 2016. According to Global data, the company involved with the data and its analysis, with good prospects for growth Most of the startups (unicorns) are supported by Chinese companies and fully invested units. Unicorns are called startups that are valued at one billion dollars or above. This matter is serious because these companies are the future of India.
Alibaba has invested in 4 unicorns
According to this data, most ‘unicorns’ (17 out of 24) in the country are supported by Chinese companies and pure investment firms. It consists mainly of Alibaba and Tencent. Alibaba and its partner Ant Financial have invested $ 2.6 billion in four Indian unicorns (Paytm, Snapdeal, Big Basket and Jomato), among others.
Tencent has invested in 5 unicorns
Tencent has invested $ 2.4 billion in five unicorns (Ola, Swiggy, Hike, Dream 11 and Biju), among others. Other major Chinese investors investing in the country’s startups include Metuan-Dinping, Didi Chuxing, Fosun, Shunwei Capital, Hillhouse Capital Group and China-Eurasia Economic Cooperation Fund.
Changing FDI rules gives Chinese investors a little trouble
Kiran Raj, a technical analyst at Global Data, said that until last year China was betting significantly on Indian technology startups in the hope of good growth in the medium to long term irrespective of geopolitical tensions. He said, ‘However, the recent tension on the border and the tightening of FDI (foreign direct investment) by India has created some bottleneck for Chinese investors.
India made changes in FDI rules
This step was taken to overcome the possibility of acquisition of pressure companies by neighboring countries in the midst of Kovid-19 crisis. Kiran Raj said that although this is a temporary measure and looking at the bilateral investment relations between the two countries, the long-term impact could be seen in the future itself.