Chinese are now Investing in Indian Start-ups

The Chindian Connection can be described as the connection between Indian and Chinese businesses. It was seen that China has played a huge part in not just being the hub of manufacturing but also in investing in countries like India.

The Chindian Connection
The Chindian Connection

China was seen to be the 17th largest investor in India in 2016. It was at 28th position in terms of investing in 2014, which shows that India and China are working together in many aspects for their respective economies.

Since startup culture has been very high in India, Chinese investors have seen it as a vast opportunity. This has brought in Chinese Foreign Direct Investment which is very unlike the Chinese when it comes to Indian products.

A total of $2,000 million has been investor in 2017 by Chinese to the Indian economy. This is a jump of 3 times, when compared to 2016 when it was just $700 million. Most of the capital goes into Startups, with major investments in startups such as Truebil, Paytm, Flipkart and MakeMyTrip.

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What makes the Chinese investors stand out is the long term approach, instead of short term which the Westerners eye.

Shubh Bansal, Co founder of Truebil a pre owned car market place has Chinese investors and states-

“They are balancesheet investors, not looking for exits,” “They understand India better than their western counterparts,”

It is seen that Chinese entrepreneurs are far ahead on the business world and game of entrepreneurship. This paves the way for Indian entrepreneurs to learn from the Chinese experience.

Chinese investors, are growing sick of lower opportunities and tighter government restrictions and hence is exploring other countries capabilities.

Major Chinese Investments include-

  • $1.1 billion by Shanghai Fosun Pharmaceutical Group for a 74 percent stake in India’s Gland Pharma
  • Paytm is 40%-owned by Chinese e-commerce firm Alibaba with Alibaba reportedly raising its stake to 62%