Foxconn plans India investment fund, incubator for startups

Foxconn is already manufacturing for Chinese phone maker Xiaomi and Micromax in India

Foxconn Technology Group, the manufacturer of devices such as iPhone and Amazon Kindle, plans to set up an India investment fund and an incubator to invest and mentor technology start-ups in the country.  Foxconn is already manufacturing smartphones for Chinese phone maker Xiaomi and local rival Micromax in India.

“We will look at various segments, including services, mobile internet, power-software and integrated technology and help start-ups grow faster not just in capital raising but by providing the right facilities as well,” Jacob Chen, president of Foxconn University and a corporate executive vice-president at Foxconn.

The firm will also help start-ups in Indian universities. “We are also working with the ecosystem to grow (manufacturing) in India,” said Chen.

Chen, Vincent W H Tong, executive director and chairman, FIH Mobile Ltd and  Calvin Chih, president and general manager at Foxconn International Holdings, were among senior Foxconn officials who met senior executives of start-ups in Bengaluru such as Flipkart’s Sachin Bansal to engage and explore investment and collaborative opportunities.

Other start-ups include taxi cab aggregator Ola Cabs, electric scooter maker Ather Energy and health monitoring app firm Cooey. “The incubator will sync in the great opportunities that we have witnessed so far while visiting various cities and states,” said Tong.

Tong is part of a 30-member Foxconn delegation, including Founder-Chairman Terry Gou, who is on a three-day visit to India to explore business opportunities. Gou skipped his scheduled visit to Bengaluru, as he was busy meetings industry leaders in Mumbai, officials said. The National Association of Software and Services Companies (Nasscom) facilitated the start-up meetings for the delegation.

“We don’t have a better partner than Foxconn, with their huge expertise, for ‘Make in India’, and also to go digital,” Ravi Gururaj, chairman, Nasscom Product Council.

Besides, the group has plans to fund universities and other educational institutions for promoting research.

“Young companies may have an idea. We have a platform that can open up our patents to the start-ups. We have the design, rapid product prototyping, supply chain, and also have an e-commerce play,” said Chen.

Chen said the company has been investing in start-ups worldwide, especially in China. It allocates about 20-30 per cent of its resources, including funds and facilities, to help start-ups, he added.

Foxconn has already expressed its keenness to set up 10-12 manufacturing units in India, as it sees increasing consumer appetite for technology gadgets.