Chinese tech investors are increasingly looking for a way to gain access to India’s untapped potential, and their approach has been to bet on local talent to best approach the market.
“From 1990 to 2014, aggregate Chinese [foreign direct investment] in India was less than $2 billion.
From 2012 to 2016 or 2017 that number was $6 billion to $7 billion,” mostly led by China’s tech giants like Alibaba and Tencent, said Dev Lewis, a researcher at Hong Kong-based think tank Digital Asia Hub during a TechNode Emerge panel at TechCrunch Shenzhen on Monday.
Chinese investor interest in India is primarily centered around e-commerce and social media, said Richard Xu, who heads the US operations of Grand View Capital, a New York investment bank.
Unlike US tech giants, Chinese companies often choose to invest in local startups rather than rolling out their products straight from the Chinese market, because of the differences between the two markets.
“[Chinese investors are] not saying let’s be the Facebook of India.