MUMBAI: Global venture capitalists and private equity investors are allocating more funds to India as China steps up regulatory clampdown on its tech companies.
India overtook China in July for the first time since 2013 in VC funding, according to a Bloomberg report. Indian startups raised nearly $8 billion in July, while funding to Chinese firms dropped to about $5 billion, the report said.
Venture capital (VC) firms said Indian technology companies are seeing a significant uptick in funding as global investors rethink their China strategy and sharpen their focus on India, which has traditionally lagged the dragon in terms of drawing capital.
Indian startups have raised a record $17 billion in the January-July 2021 period, a surge from about $12 billion raised in full year 2020 and $14 billion in 2019, according to analytics firm GlobalData.
"Till now, India lagged China. As Chinese tech and global investors grapple with the expanding government and regulatory crackdown, India's tech fundamentals appear strong. A host of B2C (business-to-consumer) and B2B (business-to-business) sectors are coming of age. The pace of scaling and value creation has accelerated. For global investors, India increasingly checks the right boxes for tech investments," said Sameer Nath, managing partner at the Mumbai-based VC firm TrueScale Capital.
Read more at: http://timesofindia.indiatimes.com/articleshow/85639529.cms
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