India is becoming the land of startups and as per NASSCOM the number of Startups in India has reached 7200. With the advancement in connectivity and digitalisation of India, the country has become a more popular battleground for startups. In June 2019, with the entry of Druva into the Indian Unicorn list, the count of Indian unicorns has reached 17. India is at the 4th spot when it comes to the number of Unicorns in a country. These startups are obviously backed by giant investors who understand the potential of the business models of these startups.
Ever wondered who the most prominent investors in the Indian Startup Ecosystem are? Who all are making the biggest investments?
SoftBank is the 7th largest Japanese company having its foothold in sectors like Telecommunication, software, semiconductors, investment etc. SoftBank started investing in Indian startups by putting $1.4bn in PayTm, followed by an investment of $2.5Bn in Flipkart. Other startups which made their way into SoftBank’s portfolio are Ola, OYO rooms, Snapdeal, Grofers, Policy Bazaar, Delhivery, and InMobi. The total investment by SoftBank in India is around $10bn.
SoftBank Investment in India
2.Tiger Global Management
The Tiger Global Management aka “The Tiger Fund” is an American investment firm. According to Crunchbase, out of their total investments, Tiger global investments has invested approximately 30.5% in Indian startups and it is the 2nd largest part of the pie after their investment in the USA. TGM has some big startups in its basket, like Flipkart, Policy Bazaar, Hike, ShopClues, FreshWorks, Clevertap, and Ninjacart.
Tencent is the Shenzhen based company, having investments in Indian startups like Byju’s, Dream11, Hike, Flipkart, Ola, and Practo. Tencent has few of the most successful startups in its investment portfolio. Recently, Tencent invested $1bn in the food delivery service provider, Swiggy.
Alibaba is China’s investment firm led by Jack Ma and has invested in big startups like PayTm, Snapdeal, Zomato, and Bigbasket. Alibaba and Tencent are competing as investors in India and want to capitalise on this growth phase of the startup ecosystem in India. Recently, Alibaba has strategised to invest in a smaller amount now after investing in PayTm and Snapdeal.
Naspers is the largest company in South-Africa by market value and has invested in Flipkart, Make My Trip, OLX, Swiggy, and Food Panda. Naspers recently sold it’s stack in Flipkart to Walmart. Naspers is competing with Tencent in the investing arena in India.
Naspers investments in Indian Startups
We hope now you have basic knowledge of which startups are backed by whom. Comment below if you want us to add more investors and startup related posts.