Chinese Investors Cautiously Puts Funding on Hold
As we know, the Indian government stated rules that all investments from foreign countries with India will require approval before any proceedings. With this Chinese VCs are more cautious about India’s new foreign direct investment policy.
Investors said that funds coming into the country have already been impacted. Some investors have even withdrawn term sheets that were on the table, the investors said on condition of anonymity, adding that they were waiting for clarifications from the government on the policy. Over the last few years, prominent venture capital firms such as Shunwei Capital, Fosun RZ Capital, CDH Investments, Hillhouse Capital and Morningside Ventures have set up their local offices and hired investment professionals to scout for deals, across stages, in Asia’s third-largest economy, where they have emerged as the largest purveyors of capital, reported ET.
Chinese investors have invested in close to USD 6 billion into India’s digital ecosystem in the last two years, as they wanted to land into the world’s fastest growing, yet largely untapped, consumer market. Though we have prominent VCs from our side, Huge money to many firms comes from giants like Alibaba Group and Tencent Holdings, which have invested several dollars in India’s top startups, including Paytm, Ola, Byju’s and Dream11.
Out of India’s unicorns privately held companies valued at USD 1 billion and more. According to KMCG the restriction on funds came at the time when VC financing in Indian statups got into USD 2.2 billion in Q1 of the fiscal 2020.
Read More News :
.jpg "Caim By Arelang: India's First CandyCeuticals Company Offering Nutraceuticals in Irresistibly Tasty Treats")
