Indian Tech Startups Attract investors as Focus Shifts from China
According to numerous founders and investors, Indian technology firms, which are raking in record amounts of venture money this year, could benefit even more if global capital shifts away from Chinese IT businesses facing a regulatory onslaught.
The continuing attack on Big Tech by the Xi Jinping-led government might lead to long-term changes in how major internet businesses are governed worldwide.
Ashwin Damera, the CEO of Eruditus said, China receives far more venture money than India. If the Chinese funnel becomes clogged, the money would have to flow somewhere, and with so much liquidity, emerging countries like India will get it.
Ashwin’s start-up, after receiving $650 million from Softbank, Accel US, and others earlier this month, the company’s worth jumped fourfold to $3.2 billion.
When the industry is experiencing significant liquidity, India is the third-largest startup market in the world, behind the United States and China. According to figures from industry tracker Venture Intelligence, the country has already seen 25 new unicorns, which are startups valued at $1 billion this year and almost $20.76 billion funded in 583 deals as of 20th August.
Hans Tung of GGV Capital said that there is no second thought that the United States and China are the world’s largest IT marketplaces. Still, a rising number of individuals believe that India may benefit from China’s lessons to expand quicker while simultaneously providing chances for indigenous ideas.
In a week, over half a trillion dollars vanished from Chinese tech stocks due to the ongoing China tech crackdown, including Alibaba Group and other top companies. The Chinese government announced stricter data privacy regulations this week, requiring technology businesses to safeguard user data in a way that has frightened investors.
Last month, China surprised the world by banning private involvement in the $100 billion education industry, declaring that platforms that teach school topics cannot accept foreign capital.