China’s VC investments in Indian start-ups have grown five-fold to USD 5.6 billion in 2018 compared to USD 3 billion in 2017 and USD 668 million in 2016, the data from research and analytics platform Tracxn showed.
The major Chinese investors in India include Alibaba, Shunwei Capital, Fosun Tencent and Xiaomi. Consumers, food-tech, logistics, retail, artificial intelligence, Internet of Things and fintech have attracted maximum investments.
As per the Tracxn data, Chinese VCs have poured in more than half a billion since the beginning of this year.
Despite bilateral and geopolitical differences, economic ties have been steadily growing between the two countries.
“As two large developing countries and major emerging market economies, China and India both have a huge domestic market. The economies of both countries are highly complementary to each other, creating enormous potential for cooperation,” Gao Feng, spokesperson for the Ministry of Commerce, had told Xinhua last year.
Rehan Year Khan, founder and managing partner at Orios Venture Partners, told BusinessLine “India is a large and exciting market. The Americans, Europeans and Japanese have always been actively investing here. Now the Chinese have joined in. India does not have any trade tension with China, thus business between the two nations will improve.”
He said the Chinese capital requires no major privacy and security treatment and India has enough safeguards with regards to all investors.
“Entrepreneurs may benefit from huge capital flowing in. But we should avoid opening sensitive areas for investments to Chinese investors including security and companies catering to defence,” Vikram Gupta, founder of IvyCap, told The Hindu Business Line adding Chinese investments are likely to grow in the absence of large Indian investors.
According to a KPMG report, in China, corporate VC is growing rapidly, and more companies have VC arms and they are actively looking for disruptive technologies within their country and outside reported The Hindu Business Line.