Large financial institutions in India should also be encouraged to channelise a proportion of their investible surplus into domestic funds, which would bring in additional local capital for startup investments, the panel said.
India needs to cut dependence on capital from key destinations such as the US and China for its start-ups and become “self-reliant” by having several large domestic growth funds powered by local capital to support its unicorns, the parliamentary standing committee on finance said in a report, seemingly echoing the government’s latest Aatmanirbhar initiative.
Interestingly, of the 21 Indian start-up unicorns (with a combined valuation of about $73.2 billion) that featured in the Hurun Global Unicorn Index released in August, as many as 11 have got funding from Chinese investors like Alibaba, Tencent and DST Global.
Japanese investor SoftBank has investments in nine of these unicorns, while the US’ Tiger Global has invested in five. Recently, Tiger Global also invested in food delivery start-up Zomato, while Byju’s secured funding from US-based Bond.
Source: Financial Express
