As venture funding in the Indian tech sector slows to a trickle, anxious local start-ups may have found a new backer of their dreams – Chinese investors.
Eager to invest in a market that is home to more than 12,000 start-ups and, they believe, at the tipping point for growth, a slew of Chinese investors are committing to new Indian ventures even as their American and European peers take a step back.
Their ultimate aim? To pick a winner capable of emulating the Chinese Unicorns – firms worth more than US$1 billion.
The trend started with a trickle in January last year when Hillhouse Capital invested US$50 million in the start-up CarDekho, an online automobile search engine. Soon after, press reports suggested Alibaba, owner of the South China Morning Post, and its financial-services affiliate were investing more than half a billion US dollars in Paytm, an e-commerce website that subsequently turned into a Unicorn. In August, Indian e-commerce company Snapdeal.com said it had raised US$500 million from investors including Alibaba and Foxconn.
For more on this story visit the following link: Why Chinese investors think India’s tech sector is the next big thing
Source: South China Morning Post