Indian phenomenon
In recent years, India has made a real breakthrough in technology. In addition to being in the top 5 largest economies in the world and having a GDP growth rate of up to 7%/year, the country has other conditions for rapid development of new initiatives. This means creating promising startups.
India has the world's youngest population. Rapid urbanization. World-class intellectual and professional resources from India. Rapid growth in e-commerce. Favorable infrastructure with cheap internet access. UPI electronic payment system and biometric Aadhaar digital ID for most citizens.
Some analysts predict that India will be among the top 3 economies in the world by 2030. That is why the country attracts investment.
The potential of the Indian market is recognized by leading financiers and investors such as billionaire Ray Dalio and Elon Musk. Both believe that under current conditions, India will soon become a true digital powerhouse.
The Tesla GigaFactory, scheduled to break ground in early 2024, is likely to be a major boost to the growth of India's tech industry.
In 2021, India attracted $70 billion in venture capital. In 2022, the value dropped to $56.5 billion, but the number of projects remained the same (around 1,500 projects), 200% higher than the period before 2021.
India is increasingly attracting venture capital. Growth rate from 3% (in 2020) to 5% in 2022.
According to Axevil Capital, investors will shift from China to India. The number of successful startups with a market capitalization of more than 1 billion USD will surpass China.
Investment prospects
The three areas of interest to investors are consumer technology, Fintech and SaaS software. Consumer technology includes e-commerce, technology foreducation , healthcare and gaming. Online shopping is an important area.
Fintech promises to bring convenience and security to work thanks to the protection of personal data with biometrics and encryption, as well as online banking.
Software as a service (SaaS) is mainly built on cloud technologies, suitable for all companies, helping to reduce operating costs.
Of the total investments in Indian companies, 88% are in the final stages. This is one way to secure investment. Such startups almost never go bankrupt.
It is predicted that from now until the end of 2023, many successful investment rounds and IPOs, including BYJU's, Razorpay and Gupshup.
Ha Thao (According to Finambank)
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