Last Updated on Nov 3, 2021 by Ayushi Mishra

Recently, Mr Sumant Mandal, managing partner at US venture investor, March Capital said that China’s crackdown on its technology industry will turn the attention of global investors who seek to invest in emerging markets towards India.

Chinese regulators are putting a leash on its unruly internet companies under a campaign that maps everything from gaming to “money worship” companies.

Mandal also said this news has forced foreign investors to put more weight on the potential government risk of geopolitics and regulatory scrutiny on tech businesses while assessing their investments.

How can it be good news for Indian tech companies?

Indian tech startups have been showing stronger growth prospects in areas like the internet and cloud software, that too without a similar risk profile.

Yes, in terms of size, India’s internet industry is far behind that of China’s. However, the new billion-dollar startups and series of Initial Public Offerings (IPO) make the Indian technology market look good to investors. Mandal said, “China’s market is of a size and scale that is unmatched, but the risk-reward structure around China has changed”. This makes investors from the US, Europe, Asia, and the Middle East want to reroute their investments towards India so as to balance their portfolios.

March Capital plans to increase its investments in Indian startups. Mandal talks about how coronavirus has changed the Indian consumer behaviour which proved to be a boon for companies handling e-commerce and digital transactions.

Mandal leads March’s investments in areas like Software as a Service (SaaS) and blockchain technology and said that more than 2 dozen Indian startups have moved to the US and garnered hundreds of millions of dollars in revenue by winning the global consumers over.

Ayushi Mishra
Inline Feedbacks
View all comments
55,00,000+ users trust Tickertape for Investment Analysis!
55,00,000+ users trust Tickertape for Investment Analysis!
55,00,000+ users trust Tickertape for Investment Analysis!
55,00,000+ users trust Tickertape for Investment Analysis!

The blog posts/articles on our platform are purely the author’s personal opinion and do not necessarily represent the views of Anchorage Technologies Private Limited (ATPL) or any of its associates. The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, please consult a professional financial or tax advisor. The content on our platform may include opinions, analysis, or commentary, which are subject to change, without notice, based on market conditions or other factors. Further, the use of any third-party websites or services linked on the website is at the user's discretion and risk. ATPL is not responsible for the content, accuracy, or security of external sites. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The examples and/or securities quoted (if any) are for illustration only and are not recommendatory. Any reliance you place on such information is strictly at your own risk. In no event will ATPL be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

By accessing this platform and its blog section, you acknowledge and agree to the Terms and Conditions of this website, Privacy Policy and Disclaimer.