Shares in FSN E-Commerce Ventures Ltd., the entity that operates the Indian beauty startup Nykaa, almost doubled from its issue price after its November debut. While listed “new economy” companies account for 60 per cent of China’s MSCI index, they make up only five per cent of India’s, according to Goldman Sachs. Article content Zomato’s shares have doubled from its issue price to a US$15-billion valuation. This advertisement has not loaded yet, but your article continues below. Mid-stage deals in India for the quarter to the end of September were up 93 per cent from last year, compared to a three per cent drop in China, according to the AVCJ. Investors are now redeploying their capital given the “non-linear” developments in China, said Nick Xiao, the chief executive of Chinese wealth manager Hywin Holdings Ltd.’s Hong Kong arm.įunds raised by technology startups via public listings in mainland China are on track for the first annual drop in seven years while tech listings in India have so far raised US$2.6 billion in 2021, a jump of 550 per cent compared to last year’s total.Ĭhina still leads in terms of the number of private market deals - a gap reflecting its head start fostering a homegrown tech sector - but India’s growth rates have outpaced it this year. Photo by Florence Lo/Reuters illustration files Article content The app of Chinese ride-hailing giant Didi is seen on a mobile phone in front of the company logo. The investigation is continuing and Didi’s share price is languishing more than 40 per cent below the offer price. Two days after Didi’s blockbuster IPO on the New York Stock Exchange in June, Chinese regulators announced a probe into the company over data security, wiping out one-fifth of its market value. The fate of Didi Chuxing Technology Co., China’s leading ride-hailing app and another high-profile casualty, is also uncertain. Ant Group, for example, has not revived its scuttled IPO.
While the clampdown has slowed, the threat of curbs still hangs over many Chinese companies. and Meituan, the shopping platform, were all ensnared. The powerful Ma, as well as national champions such as Tencent Holdings Ltd. The scrapping of Ant’s IPO by Chinese authorities last year swelled into a blizzard of regulatory changes and probes aimed at everything from curbing monopolistic behaviour to data privacy and wealth distribution.
“The same usual suspects - SoftBank, Alibaba - are looking for a smart exit, and they time it to perfection.” They are exit money,” allowing investors to sell, said Anurag Singh, managing partner at hedge fund Ansid Capital Partners LP, which has not invested in the recent IPOs. “These new age (tech) IPOs are not growth money. Its share offering did not attract as much demand as other recent IPOs such as Zomato Ltd., something analysts ascribed to its US$20-billion valuation and tough competition. Skeptics see the Ant- and SoftBank Group Corp.-backed Paytm - whose loss-making businesses have struggled against Google LLC, and Walmart Inc.’s Flipkart - as a test of how far investors will buy into the hype. There are fears the country’s buoyant tech markets are already overheated as competition to buy stakes inflates valuations and leaves companies and retail investors vulnerable to corrections. It is unclear how long the additional investor enthusiasm for Indian tech will last. “I think everyone in the world over the last six to 12 months has adjusted to” the regulatory action in China. “It’s about thinking where you look, how you play the different markets,” said Kabir Narang, a partner at B Capital Group Management LP, an investment firm active across Asia. The Financial Times spoke to multiple investors who had diverted funds from China to India and elsewhere, but declined to speak on the record due to still having holdings and clients in China. Photo by Punit Paranjpe/AFP via Getty Images The Bombay Stock Exchange building is seen illuminated during a special trading session on the occasion of Diwali festival in Mumbai on November 4, 2021. India’s benchmark Sensex equity index is up 25 per cent this year, the best performer among Asia’s large economies, while China’s Shanghai SE composite index is flat over the same period. Article contentįor every dollar invested in Chinese tech in the quarter that ended September, $1.50 went into India, according to the Asian Venture Capital Journal.
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