Surpassing China, what does India do to attract 'eagles' startups?

Indian phenomenon

In recent years, India has made a real breakthrough in technology. In addition to being in the top 5 largest economies in the world and having a GDP growth rate of up to 7%/year, the country has other conditions to develop new innovations rapidly. This means creating promising startups.

India has the world's youngest population. Rapid urbanization. World-class intellectual and professional resources from India. Rapid growth in e-commerce. Favorable infrastructure with cheap internet access. UPI electronic payment system and biometric Aadhaar digital ID for most citizens.

Some analysts predict that India will be among the top 3 economies in the world by 2030. That is why the country attracts investments.

The potential of the Indian market is recognized by leading financiers and investors such as billionaire Ray Dalio and Elon Musk. Both believe that under current conditions, India will soon become a true digital powerhouse.

The Tesla GigaFactory, scheduled to break ground in early 2024, is likely to be a major boost to the growth of India's tech industry.

In 2021, India attracted $70 billion in venture capital. In 2022, the value decreased to $56.5 billion, but the number of projects remained the same (about 1,500 projects), 200% higher than the period before 2021.

India is increasingly attracting venture capital. Growth rate from 3% (in 2020) to 5% in 2022.

Investors will shift from China to India, with the number of successful startups valued at more than $1 billion surpassing China, according to Axevil Capital.

Investment prospects

The three areas of interest to investors are consumer technology, Fintech and SaaS software. Consumer technology includes e-commerce, technology for education , healthcare and gaming. Online shopping is an important area.

Fintech promises to bring convenience and security to work thanks to the protection of personal data with biometrics and encryption, as well as online banking.

Software as a service (SaaS) is mainly built on cloud technology platforms, suitable for all companies, helping to reduce operating costs.

Of the total investments in Indian companies, 88% are in the final stages. This is one way to secure investment. Such startups almost never go bankrupt.

It is predicted that between now and the end of 2023, many successful investment rounds and IPOs will be completed, including BYJU's, Razorpay and Gupshup.

Ha Thao (According to Finambank)

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