In a meeting organised in Bengaluru earlier this week, a group of 16 Chinese investors after meeting approx 150 start-ups which majorly focused on consumer showed interest in seeding these particular companies with more capital that would eventually help them to grow. The Chinese companies further discussed the e-commerce, technology services and other aspects along with doing the data analytics. Among these start-ups there were some big names as well who participated in the meet like The Fashion App, Wooplr and Senseforth.
The reason why only the Indian market is dominated by the US and European based funds and why China being one of the biggest investors didn’t invested significantly in India is because it felt that start-ups in India have any growth potential or are worth investing. But it seems like they have released that it’s not true. Founder of Incapital, the $ 1.2 billion dollar fund from China, Jinbao Xiang lately said, “We should not ignore India now. Especially with the growth it is witnessing. Back in China, investors have been misinformed about the country’s potential and India is not in the radar of investment. This is why we are here to find out in person about Indian startups and want to be proved wrong.”
Founder of Denton’s, a Chinese law firm, Yixing Liu said, “India has very completed tax structures and judicial systems. Although I warn many Chinese investors on the risks of contracts not being enforced in India, I also tell them that they cannot ignore the growth in India.” He further added, “We are confident that there will be easier exit options and protection here from the government.”
Let us tell you that China stands 9th on the World Bank Index of enforcing contracts whereas India stands 7th ahead of China. These Chinese companies investing in start-ups, means ultimately a great benefit for the youngsters and the pass-outs as they would have new job opportunities and/or a chance to be a part of organisation towards making it even bigger. Well, the meeting was in closed doors but we are hoping for the Chinese companies to fund as many start-ups as possible.
