India, stay optimistic!
Going overseas has been focusing on the new global economy since 2018. Continue to track the new opportunities and challenges of venture capital ecology in the global market , bring first-hand information back to Chinese readers. Overseas subsidiaries of 36Kr Global and other sub-brands of 36Kr Global, KrASIA, 36Kr India, and major Chinese and overseas top investment institutions-Qiming Venture Capital, Zhenge Fund, Golden Gate Ventures, GGV, Morningside Capital, Gobi Ventures, Qingliu Capital——To conduct a comprehensive review of the three emerging markets in Southeast Asia, India, and Africa in 2019, try to see the panther, and set expectations and forecasts for the Indian market in 2020.
India with economic downturn and capital still hot
According to the data released by the Central Bureau of Statistics of India, India ’s GDP growth rate fell to 4.5% as of September 2019, which is the lowest record since 2013, and the per capita GDP is about US $ 2,000.
Even so, India’s venture capital market in 2019 is still lively, and capital from around the world continues to invest; it is the most unicorn year in history. Known as the last billion user market with huge opportunities, it is very similar to China 15 years ago. Can India, like China, excite explosive energy in the Internet era?
In the previous article, Chuhai released the forecast of the Southeast Asia 2020 venture capital market . This time together with 36Kr India, Qiming Venture Capital, GGV, Morningside Capital, we will review the development of India in the past year and discuss where India’s future opportunities lie.
India Trend Forecast 2020
Inventory of major events and trends
Capital market
The promotion of capital plays a vital role in local economic development:Identify outstanding companies and support them during growth and outbreaks. In India’s capital markets in 2019, we have observed these changes.
1. In addition to the IPO, other exit paths have also been seen in India
The acquisition of Indian e-commerce company Flipkart by global retail giant Wal-Mart in 2018 is India’s first real money feedback to the capital market. In 2019, OYO founder Ritesh Agarwal repurchased some shares from early investors for about $ 2 billion.
We see that the exit path of the Indian market has become more diversified. However, as a whole, the Indian market needs more exits to prove that it has the same potential as China to achieve a relatively stable capital return.
“In 2018, Wal-Mart acquired Flipkart, and the success stories of OYO ’s founders in buying back equity from early investors have changed investors’ views on the exit path of Indian capital—IPOs are not necessarily the only path, M & A, management There is great potential for the acquisition of the company. “—— Tong Shihao, Managing Partner, GGV
“The sale of Flipkart to Wal-Mart in 2018 was the largest exit in the history of Indian VC, and it was a multi-billion dollar level of real gold and silver capital return. OYO investors also have the company’s recent financing Partial exits. Although not necessarily a dust settle at the business level, these exits have stimulated confidence in the Indian capital market and attracted more global capital influx. “—— Cheng Yu, Partner, Morningside Capital < / p>
2. India’s venture capital market has matured, with global capital entering in the early years, India’s globalization advantage is obvious
Unlike the Southeast Asian market, India has many global capital inflows in the early stages of the market, such as Accel, Jingwei, SAIF, SoftBank, etc. Investment institutions from around the world provide a broader perspective on the Indian market.
In addition to the local consumer market, India is ahead of its time in terms of IT and language advantages, especially in the area of corporate services SaaS. From the perspective of the overall market coverage, it even surpasses China and seamlessly connects to the global market.
Because of the backing of USD capital, many Indian companies have the opportunity to go to overseas markets in the future, such as Nasdaq or Singapore for IPO. At present, Indian companies can only be listed in China. However, due to the clear advantages, investors are still willing to give India more time and support.
“Looking at the world, no other country has the same population, market size, cultural characteristics,