Indian start-ups see huge inflows from Xiaomi, Shunwei Capital

Chinese investors find Indian start-ups attractive because of fair valuation, higher prospects of gain

Amid a growing start-up system and information technology (IT)-based service offerings, Chinese firms Shunwei Capital, Morningside Ventures, Sailing Capital, China-Eurasian Economic Cooperation Fund and Xiaomi are fast emerging as the most active investors in the Indian subcontinent.

Analysts say a fair valuation of Indian start-ups as compared to peers in America and Europe, along with the possibility of larger return on investment, are prompting these entities to infuse multi-billion dollars into Indian start-ups. 

This new interest from Asia’s largest economy in its smaller peer has translated into a higher number of deals, apart from multi-fold rise in investment amounts. Last