There are talk of boycott of Chinese goods amidst the ongoing tension in Ladakh. But according to the data of Global Data, in the last four years, investment of Chinese companies in new companies (startups) of the country has increased almost 12 times. The investment of Chinese companies in Indian startups was $ 38.1 million (about Rs 2,800 crore) in 2016, which increased to $ 4.6 billion (about Rs 32 thousand crore) in 2019.
Global data provides data and analysis on economic matters. According to the company, 17 of the 24 major startups in the country have received corporate investment with Chinese companies. Alibaba and Tencent are the leading Chinese investment companies. These startups are worth a billion dollars or more market.
Alibaba and its affiliate Ant Financial have invested 2.6 billion (about Rs 18 thousand crore) in four of India’s major startups (Paytm, Snapdeal, BigBasket and Jomato). Whereas, Tencent and other Chinese companies have invested $ 2.4 billion (about 17 thousand crore rupees) in five major startups (Ola, Swaggy, Hike, Dream 11 and Byjus).
Other major Chinese investors who have invested in Indian startups include Shunwei Capital, Hillhouse Capital Group, Metuan-Dinping, Didi Chuxing and Fosun.
Kiran Raj, chief technology analyst at Global Data, said, “Until last year China was investing heavily in Indian technology startups regardless of geopolitical tensions. However, recent tensions at the border and the tightening of foreign direct investment (FDI) regulations by India have created some problems for Chinese investors. The FDI rules were tightened to address the possibility of takeover by companies in neighboring countries of stressed companies amid the Corona virus crisis.