LONDON, Sept. 11 (Xinhua) -- Indian start-ups, pressed by the impact of COVID-19 epidemic, are faced with uncertainties and difficulties as their government has been treating China, their main capital source, with hostility, local media reported Thursday.
India has abused the concept of national security and taken discriminatory and restrictive measures against Chinese enterprises. It has banned at least 118 Chinese mobile apps and proscribed investment from China in highway projects and small and medium enterprises.
However, many Indian start-ups, which have no way to obtain governmental support and Western funding, have been looking to Chinese investment.
"Clearly one big source of capital has vanished," Haresh Chawla, partner at True North, a private equity firm, was quoted by the British Broadcasting Corporation (BBC) as saying.
Data from start-up research firm Tracxn shows that 35 Chinese corporations and 85 venture capital and private equity firms have invested over 4 billion U.S. dollars in major Indian start-ups since 2010.
A total of 18 of India's 30 unicorns technology companies have Chinese investment with a valuation of over 1 billion dollars.
"Given the large presence of the Chinese, it may be difficult for funds from other jurisdictions to immediately fill their shoes," said Atul Pandey, a partner at a law firm.
Moreover, Indian start-ups hoped to learn from the mobile-first evolution of the Chinese market, but the current tensions have caught many off guard. Enditem
