The technology industry’s crackdown in China is turning the focus of global investors towards India, says Mr. Sumant Mandal, the managing partner of March Capital Partners in the US. In a video statement, Mr. Mandal stated that the investors seeking the exposure of growing market trends are set to focus on India soon after China’s crackdown.
Assessing the tech companies in China, these investors are now relying more on ‘government risk,’ said Mr. Mandal. The co-founder of a California-based firm in Santa Monica, Mr. Mandal said, “China’s market is of a size and scale that’s unmatched.” However, the risk-reward structure hasn’t remained the same, added Mr. Mandal.
Indian startups based on the internet and cloud software allocate significant growth prospects. Mr. Mandal stated that this growth isn’t accompanied by a similar risk profile. Chinese regulations took over the unruly aspects of these fields, questioning companies in a campaign about the prospects of their earnings and company growth.
Though the Indian internet industry trails way behind China, the recent billion-dollar start-ups and initial public offerings have had a significant impact on the growth. Considering these movements at an intensifying pace, Mr. Mandal stated that investors from Europe, the US, the Middle East, and Asia, amongst others, are routing for the Indian industries to balance their portfolios.
Adding to these, Mr. Mandal also stated in his video interview that March Capital has a history of supporting India-based start-ups. He stated that the company is in plans to increase the investments shortly. Mr. Mandal also stated that the novel coronavirus has had a significant impact on the Indian consumers, and opined that this move is an advantage for several firms based on digital transactions and e-commerce.
March Capital has more than a billion dollars in assets which include a $450 million fund closed earlier this year. Last month, the company had two exits representing around $6 billion jointly in India. One among these was the BillDesk, an online payment service acquired for $4.7 billion. This happened within two days after the CarTrade company had its IPO.
Mr. Mandal heads the investments of blockchain, network infrastructure, software, and related fields from March Capital. He stated that various Indian-origin SaaS start-ups have now moved to the US successfully and garnered millions of global customers along with huge revenue. Adding that India has a more belief system around its market, Mr. Mandal stated that the extent of the companies like BillDesk, Flipkart, and others change everything.