Following China’s crackdown on its technology industry, according to Sumant Mandal, managing partner of March Capital Partners, a venture capital firm based in the United States, global investors looking for new opportunities in emerging markets will turn their attention to India.

Investors are increasingly concerned with “government risk” when evaluating Chinese technology companies, according to Mandal, who spoke in a video interview. The co-founder of the California-based company Santa Monica, Mandal, believes that India’s startups have strong growth prospects in areas such as the internet and cloud computing, but they do not have a comparable risk profile.

Regulations in China are cracking down on internet companies that raise concerns about their growth and earnings prospects as part of a campaign that includes everything from gaming to “dollar worship.” In spite of the fact that India’s internet industry is significantly smaller than China’s, the country’s recent startup and initial public offering (IPO) activity has generated billions of dollars in value.

As Mandal pointed out, “China’s market is unparalleled in terms of size and scale.” ‘However, China’s risk-reward structure has shifted,’ he continued, noting that investors from the United States, Europe, Asia, and the Middle East are now looking to balance their portfolios by redirecting investments to the neighbouring country in order to achieve greater returns.

March Capital has been a long-time supporter of Indian startups and plans to increase its investments in this area in the coming years. Because of the coronavirus, companies that handle e-commerce and digital transactions in India are seeing changes in their customers’ behaviour.

Combined deal value of nearly $6 billion arrived in India

A total of over a billion dollars in capital is managed by the firm, which includes a 450 million dollar fund that closed earlier this year. In March, two exits with a combined deal value of nearly $6 billion arrived in India: BillDesk, an online payment service, was purchased for $4.7 billion just days after CarTrade Tech Ltd was published, and CarTrade Tech Ltd was purchased for $4.7 billion just days after BillDesk was published.

Mandal is in charge of the investments in blockchain, network infrastructure, and software as a service that will take place during the month of March (SaaS). Over two dozen indigenous SaaS start-ups, according to the author, have relocated to the United States in order to win global clients and generate hundreds of millions of dollars in sales, he claims in his article.

Currently, “India is more of a faith-based society,” he explained. Startups such as Flipkart, Byju’s, and BillDesk grow in size, which changes the game.

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