Possibilities of Creating Indian Unicorns sans Chinese Capitalists

  • 18th Feb'21
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India’s Curbs On Chinese Investments

Money has no colour exceptionally for startups that survive and thrive on it irrespective of the country and region it comes from. This thought fits even adequately in the context of early or seed-stage startups for whom revenue is zero or inconsequential. They remain vulnerable to market dynamics and often dance to the tune of investors.

The largest supporters for such ‘enterprising’ businesses in India have been investors primarily from the US, Japan and China. Barring the first two, investments from China for Indian startups have the cat and mouse game in the backdrop played by the two Asian giants politically, militarily and financially.

Read the below article to know more about it:

India’s Curbs On Chinese Investments:

The alterations to India’s FDI policy prohibits any investment from a neighbouring country, including China, from entering India without government approval. Such prohibition leads to capital-starved startups and adjourning deals with Chinese investors. Read more

 

India's Curbs

 

Chinese Funding of Indian Startups

While the Indian startup ecosystem has developed dynamically in current years, improving amounts of Venture Capital (VC) has flowed into the country from various parts of the world. During the COVID-19 pandemic, Indian startups face suspicion over new investments and top-ups from Chinese investors due to India's recent modification in its foreign direct investment, or FDI, policy.

India's top startup unicorns, comprising Paytm, Zomato, BigBasket and Dream11, that count Chinese interest among their biggest supporters are likely to face delays in raising capital after the government said all foreign direct interests from the world's second-largest economy would be captive to its approval first.

A slew of development and early-stage corporations, too, which were in talks with Chinese investment or for new investors rounds, will likely face complications, while follow-on sessions from occurring backers may become increasingly complicated to execute, according to investors, lawyers and startup producers.

Refer to these below links: 

Paytm Top-Valued Startup At $10 Bn:

India has the distinction of being in the fourth spot globally in terms of the number of 'unicorns' according to their domicile country. Read more

Chinese funding of Indian startups:

Here, we will analyse the key investment made by the group of ten Chinese investors and explain the patterns emerging from it. Read more

Half of India's unicorns have Chinese investors:

Funds from China was already under stress after the Government recently amended Foreign Direct Investment rules to prevent Beijing from buying out assets at depressed prices.  Read more

 

List of Indian Startup with Chinese Investment

List of 10 Indian Unicorn Startups with Chinese Investment:

Let’s look at 10 Indian unicorn startups that have raised Chinese investment over the last couple of years. Read more

Top Indian startups/companies funded by Chinese investors:

Chinese investment banners like Alibaba Group, Tencent, Steadview Capital and Didi Chuxing dominate investments in over 18 of the 30 Unicorn companies in India. Read more

 

Here is the list of Indian Startup Without Chinese Investment

List of Indian apps without any Chinese investments:

After government bans 59 Chinese apps in India some of the Indian Apps market flooded with home origin apps. Here are some Indian apps with no Chinese investments. Read more

Startups wake up to a post-China world:

Banning apps and placing investment prohibition are seen as a low-risk operation that could help the government save face. Read more

 

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About the Author: Beauty Kumari 

An eloquent individual, love to express a myriad of topics through her words. She is ready to take any professional challenge head-on and give her best to any project entrusted to her. She wants to adversely impact through her writing and build a career out of her passion.

Sources/References:

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About the author:

Isha Panwar, OpenGrowth Content Team

 

The Editorial Team at OpenGrowth is working to provide you with the perfect place to know everything about startups. Feel free to connect with us.


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