Flush with unicorns, tech firms see chance of overtaking Chin
Last week marked a watershed for technology startups in India, as a record bout of fundraising shifted attention to the world’s second-most populous market, just as investors were becoming spooked by a crackdown on internet companies in China.
Food-delivery app Zomato Ltd. became the nation’s first unicorn to make its stock-market debut, raising $1.3 billion with backing from Morgan Stanley, Tiger Global and Fidelity Investments. The parent of digian Indian startup.
“Indian entrepreneurs have been quietly building startups for a decade now, the country’s internet infrastructure has vastly improved in that time and there’s a very good appetite for tech stocks globally,” said Hans Tung, the Silicon Valley-based managing partner of GGV Capital, which manages $9.2 billion in assets. “Investors are beginning to see the huge upside and they expect India to be a China.”
Unlike China, where online usage is much more developed, many of India’s 625 million internet users are just dipping their toes into the world of video
supply chain and delivery netpanies,
wiping over $800 billion months after regulators forced Jack Ma’s Ant Group Co. to halt a blockbuster IPO at the eleventh hour. The clampdown is expected to continue, as regulators curb the power of internet companies and wrest back control of user data.
Indian tech companies “can attract global investors who’ve burnt their hands in Chinese tech companies,” said Nilesh Shah, group president and managing director at Kotak Mahindra Asset Management Co. in Mumbai. The successful listing of a few loss-making startups could lead to re-rating of many existing companies and send the the fourth quarter of 2 according to data from rese firm CB Insights.
Flipkart is among a sle startups planning to tap pu markets in the next 24 mon with a line-up that inclu insurance marketplace Polic zaar’s parent Etechaces keting & Consulting Pvt., lo tics provider Delhivery Pvt. ANI Technologies Pvt.’s Ola hailing service. The IPOS give retail investors a chan own a stake in the start which had been available on global private investors.
In those private mark India has been minting star