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November 23, 2016

Chinese firms are now angels for Indian startups: Economic Times

An Economic Times article titled Chinese firms are now angels for Indian startups quotes Venture Intelligence data on investments by Asian companies in Indian startups:

Ctrip, one of China's largest online travel companies, invested $180 million in MakeMyTrip in January. China-based investment firm Hillhouse Capital has invested in CarDekho. Smartphone maker Xiaomi led a $25-million funding round in content provider Hungama Digital Media Entertainment in April. Taiwan's Foxconn has also made several investments, like in Qikpod, Hike and Snapdeal.

Whats driving investments by Chinese Companies and Investors? 
(Excerpts from the article)

1. "There are only two big growing markets where they can invest: India and the United States. Silicon Valley does not respect Chinese capital. So the Indian tech sector becomes attractive to them," - Mohan Kumar, Norwest Ventures.

2.  Chinese investors often value Indian startups at three to five times more than what other seasoned investors do, noted Kumar.

3. Due to political reasons Chinese (companies and investors) are for preferring partnerships and not outright buys. e.g. Chinese VC fund Incapital has tied up with Indian fund IvyCap Ventures for potential investment opportunities.


Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.