India’s top startups including Paytm, Zomato, Udaan and BigBasket, and the wider ecosystem that counts Chinese investors among their largest backers, are likely to face further hurdles in raising capital, as the anti-China rhetoric gets amplified following the ongoing military stand-off between the two countries
Chinese investors have pumped in over $5 billion in the Indian startup ecosystem so far. Some of the top investors include names such as Ant Financial, Tencent, Shunwei Capital, among others.Ant Financial alone has invested $2.7 billion in India across seven companies including Paytm. Tencent has backed unicorns such as Flipkart, Swiggy and Ola in India.
According to analysts, while fresh investments will certainly get impacted given the lack of clarity on how this will escalate, there will not be a major impact on the companies already running their businesses on Chinese money.