Chinese venture capitalists provided a record amount of funding for Indian start-ups last year, fuelling concerns about their influence amid frosty relations between the two countries, reported the Financial Times.
In the final quarter of the year, deals involving Chinese investors totalled a record $1.4 billion, according to figures from Refinitiv. Data provider Tracxn said Chinese funds invested in 54 funding rounds last year — the largest ever number — compared with just three in 2013 and more than double what it was in 2017.
This has helped turn China into one of the biggest sources of funds for start-ups in India, joining well-established investors like Sequoia and SoftBank. Two-thirds of India’s start-ups valued at more than $1 billion now have at least one Chinese VC investor.
“India is a large market where a lot of the models have yet to pan out, to create large dominant players,” said Tracxn co-founder Neha Singh. “In China a lot of those patterns have been taken. It’s a very well-capitalised economy.”