Top Chinese Investors Of The Startup Ecosystem In India

Chinese investors have had a significant presence in the startup ecosystem In India. After the recent dispute at the Indo-China border, the Indian public is actively participating in the #BoycottChineseProducts movement. This has also resulted in the boycott of the services and products offered by different startups that have received investments by different Chinese companies. There are many different Chinese companies that have invested huge amounts in many startups across the country. Many startups in India have been receiving investments worth millions of dollars from different Chinese companies who wish to establish themselves in the Indian market. And they have been quite successful in this by investing in big and popular startups and companies of India.

In this article, we discuss about the top Chinese investors in the Indian Startup Ecosystem.

Top Chinese Investors in India

Alibaba Group

  • Alibaba Group is probably the topmost Chinese company that has invested in many Indian startups over the years. Some of the biggest Indian startups and companies in which The Alibaba Group has invested include the Online Food Ordering and Delivery startup Zomato, Payments startup Paytm, e-commerce startups such as Paytm Mall and SnapDeal and online grocery Store BigBasket.
  • Ant Financials, which was previously known as Alipay is an affiliate company of the Alibaba Group. Ant Financials owns about 30% of shares of Paytm.
  • Along with this, Ant Financials also owns shares of Zomato. Zomato received about 150 million dollar in funds from Ant Financials. They currently own around 23% of Zomato’s shares, making it one of the biggest stakeholders of the company.
Investing in Startups
Ant Financial of Alibaba Owns Big Shares of Paytm and Zomato
  • Alibaba Group invested an estimate of 100-125 million dollars in the e-commerce startup, Snapdeal, which has also received huge investments from other Chinese Investors.
  • BigBasket has also received huge investments from Alibaba Group over the years. The most recent investment was about 50 million dollars after the lockdown due to the COVID-19 pandemic started.

Also Read: Also Read: Zomato grabs $210 Mn from Alipay, Ant Financial gains majority stake


SoftBank Group

  • SoftBank Group is also one of the leading Chinese Investors in India. They have invested in many Indian startups. The startups that have received investments from SoftBank Group are Paytm, Online grocery store Grofers, Snapdeal and many more. SoftBank Group raises about 50 million dollars a year to invest in various startups under the name ‘Vision Funds Investments’.
  • SoftBank Group owns about 20% shares of Paytm, making it one of the biggest investors of Paytm.
Investing in Startups
Percentage of Shares of Paytm Owned By Different Shareholders
  • SoftBank Group has also invested about 650 million dollars in the online groceries store, Grofers. This was done in response to the financial aid by Alibaba to BigBasket, which is the biggest competitor of Grofers.
  • They have also invested 1.5 billion dollars in Delhivery Private Limited, which is one of the largest logistics and courier companies in India.
  • In addition to this, they have invested a massive 10 billion dollars in Ola Rooms, one of Indias leading hotel chains.

Also Read: Delhivery - The Startup Which Took India by Storm!


Tencent Holdings

  • Tencent Holdings, or simply Tencent, is another one of the Chinese companies that have hugely invested in Indian startups. This company has invested in many different startups and companies such as PolicyBazaar, e-commerce store Flipkart, Online Taxi Booking startup Ola and Food Delivery Company Swiggy.
  • Earlier this year, Tencent invested about 110 million dollars in the video player and online streaming platform MX Player.
  • They have also bought about 10% shares of PolicyBazaar for about 150 million dollars. Hike also received investments worth 175 million dollars from Tencent Holdings.
  • Tencent also holds 9% shares of Ibibo.
  • Tencent have also invested around 15 million dollars in the Ed-Tech startup DoubtNut.
  • Apart from this, Tencent have invested in many other startups as well such as Dream11, Hike, Flipkart and more.

Also Read: Dream11 raises $100 million in funds from Tencent Holdings


Fosun Group

  • The Fosun Group has been investing in Indian startups for a long time, with keeping its main focus on Tech based startups. It has invested in many startups including Delhivery, Ixigo, LetsTransport and others. Instead of investing large in big startups like the others that are already mentioned, Fosun Group mainly focuses on small tickets for relatively small startups. The group has its presence all around the world.
  • Fosun Group owns about 1% shares of MakeMyTrip and about 6.5% shares of Delhivery. Fosun Group has also invested 12 million dollars in LetsTransport, a logistics startup.

Shunwei Capitals

  • Shunwei Capitals has invested in many startups across the past years. In November of 2008, they raised around 1.2 billion dollars for investments in Indian startups.
  • Shunwei Capitals have invested 13.4 million dollars in the Bengaluru Based startup Zest Money.
  • Another Indian startup Vokal, which is a knowledge sharing platform got investments worth 6.5 million dollars from Shunwei Capitals.

Conclusion

Not only in India, but all over the world, people are boycotting the use of Chinese products. The main reason for this is the Coronavirus (COVID-19) pandemic that has taken many lives and which is claimed to be China's wrongdoing. And after the recent dispute at the Indo-China border, in which many soldiers lost their lives at the hands of Chinese soldiers, people have become fully determined to boycott not only Chinese products, but the whole of China. People already know about the Chinese applications and products that are popular in India, and have already stated to boycott them. But China has maintained a firm grip in the Indian market by funding and investing in various startups and companies all across the country. Although these companies are India-based, but these must be boycotted too till they cut off their connections with different Chinese companies.

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About Yash Taneja

  • Ujjain, M.P.
StartupTalky
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