How Chinese investors are helping Indian startups
The Indian start-up environment and Chinese start-up environment are two of the most increasing start-up environments in the world. So, it is only logical that the two join their forces every now and then to do something amazing.
According to a recent report by analysis company Tracxn, from 2016 till now, Chinese companies have invested a tremendous $2.37 billion dollars in Indian companies. The company has also outlined that much of this investment has come from Chinese companies such as Alibaba, CTrip and Tencent into huge Indian online start-ups such as MakeMyTrip, Flipkart, Paytm, and a majority of these deals have been ideal in nature.
In fact, the two countries have a lot of resemblances between them, such as population situation, social resemblances, income levels and customer spending behavior. Hence, the Chinese industry is a better sell for Indian to look up to than the number one United States market.
However, the big change over the past year has been the constant shift from ideal to purely financial, returns-focussed investment strategies from Chinese investment capital firms.
Interest from Chinese traders wanting to duplicate in Indian testimonials from at home continues to grow. Chinese traders and Indian business owners are schmoozing more often at cross-border networking events as much for trading knowledge as for seeking opportunities.
However, some Chinese investment capital firms are being a little sensible and cautious because of their limited understanding of the Indian market. According to experts, they face a real challenge in determining good Indian start-ups and determining out a great deal since most start-ups are over funded here.