Shunwei Capital, Xiaomi Wager Large On Indian Startups

Two well-entrenched Chinese language traders — Xiaomi and Shunwei Capital, which additionally Share deep linkages — have struck their first offers within the new calendar 12 months within the Indian startup ecosystem, as they appear so as to add to their portfolios in Asia’s third-largest financial system. Shunwei Capital, which manages belongings of about $Three billion and based by Xiaomi founders Lei Jun and Koh Tuck Lye, has co-led a $5.5 million (about Rs 40 crore) funding spherical in regional language podcast app Kuku FM.That is newest deal struck by the Chinese language funding agency, which has emerged as one of the vital energetic dealmakers in India’s startup ecosystem.

The deal will even see the entry of Vertex Ventures, the enterprise capital arm of Temasek, the funding firm backed by the federal government of Singapore, into Kuku FM’s cap desk.

The Mumbai-based firm will use the proceeds from the Collection A funding to increase its content material repository, and to extend the variety of languages accessible on its platform. The deal would be the 18th funding spherical that Shunwei Capital has participated in over the course of the final 12 months, based on knowledge collated by trade tracker Tracxn.

Within the final two years, the Beijing-based agency — which is investing out of its $1.2 billion sixth fund — has backed the likes of on-line meals supply platform Zomato, regional language social media firm ShareChat, cell bike taxi service Rapido and social commerce startup Meesho.

“For many of Shunwei’s friends, India and Southeast Asia are pure enlargement locations after the rise and stabilisation of the Chinese language ecosystem. Whereas it isn’t instantly clear {that a} one-to-one mapping of market fashions and product methods will work in your entire area, funds like Shunwei have seen scale like few VCs handle to exterior of the US,” mentioned Pranav Pai, managing accomplice of 3one4 Capital.

3one4 Capital and Shunwei Capital have each invested in client lending platform LoanTap and Kuku FM.

Individually, Xiaomi, one of many largest smartphone producers in India, has invested Rs 42 crore in WorkIndia, a web based and mobile-based platform that connects firms with blue collar staff, based mostly on their location.

The deal, which is believed to have closed final month based on sources, is the newest by the corporate which has a market capitalisation of about $30 billion. Xiaomi has additionally backed the likes of Sharechat, Zest Cash and TouchTalent during the last 24 months.

Each, Xiaomi and WorkIndia founder Kunal Patil didn’t reply to emails in search of remark.

This additionally comes at a time when Chinese language traders scouting for offers in India have begun accelerating their deal making exercise, resulting in a near-doubling of investments in Indian startups to $3.9 billion in 2019, up from $2 billion within the earlier 12 months.

Moreover, they’re additionally searching for abroad geographies to park capital in, at the same time as enterprise investments on the planet’s second-largest financial system slows.

Within the fourth quarter of 2019, enterprise investments in tech startups in China dropped 51.5% over the earlier 12 months, based on the China Academy of Data and Communications Know-how, a government-backed analysis institute.―Newpaper24