According to data compiled by the research firm, the value of venture deals in India rose to $7.9 billion in July, while China’s investment declined to $4.8 billion. prekin.
The firm said this is the first time the South Asian country has surpassed its larger neighbor on a monthly basis since 2013.
Caveats apply: A month’s worth of data may have limited significance as the enterprise becomes lumpy with bursts of deal-making activity, as well as periods of sluggishness.
China had already topped $65 billion in the first half of the year, suggesting that its total for 2021 will exceed that of India.
Nevertheless, countries are moving in opposite directions. Xi Jinping’s administration has taken a slew of crackdowns on private companies in technology and beyond, scaring investors about the future’s prospects.
Startups in India are increasingly going public on demand – food-delivery apps Zomato Limited It has risen nearly 75% since its launch eight days ago – indicating a profit opportunity.
“Global investors are excited about the ability of Indian companies to compete in India and other markets around the world,” said Anees Uzzman, chief executive officer and general partner at Pegasus Tech Ventures, based in San Jose, Calif.
The July total for India was raised by a $3.6 billion funding round by Walmart Inc-controlled e-commerce giant Flipkart.
The investment was valued at $37.6 billion as it prepares for a potential IPO in 2022. China struck a flurry of deals in June just before the fall.
Prekin said the last time India overtook China in venture fund-raising was in 2013, which included the Flipkart deal.
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