Booming India stock market and the emerging Indian tech giants

India rep

Indian stock market

The size of the India stock market is currently behind to the United States, China, Hong Kong, Japan, and the United Kingdom; it is estimated that within three years it will rise from the current US$3.5 trillion, accounting for about 2.8% of the global stock market. It will grow to exceed the size of the United Kingdom and exceed 5 trillion by 2024, and the U.S. dollar increased to about 3.7% of the global stock market, squeezing out the United Kingdom and India stock market becoming the world’s fifth largest stock market.

Before move on, it’s recommended you to read my blog article “Indians do well in the US, India’s weak and uncompetitive industries“.

India stock

Indian startups have raised a total of US$10 billion since 2021, surpassing the sum of the past three years, and up to 150 companies may be listed in the next three years. The booming on India venture capital will accelerate the the India stock market.

India’s tech giants

Company nameBusiness areaMain investors
BigBasketeCommerceAlibaba
Bill DeskSimplify of billing payment
ByjusK12 educationTencent
CredFintech
DelhiveryLogistic
Dream11Online sport and gamingTencent
DruvaDigital security
FreshworksCRMticker: FRSH
Flipkartecommerce, retail Walmart, Tencent, Microsoft, Softbank
Future Groupecommerce, retailAmazon.com
GrowwInvestment platform
GupshupChatbot
HikeSocial networkTencent
IcertisContract management
InMobiMobile advertisement
JioSocial networkFacebook
MeeshoSocial networkFacebook, Softbank
MikemytripOnline ticket, hotelingCtrip.com
MLPOnline game, eSportAlphabet, Sequoai
MohallaApp development
Mu SigmaBig dataSoftbank
OlaRide hailing Tencent, softbank
LenskartOnline eyewearSoftbank
Loa ElectricEV
OyoRide hailingDidi, Microsoft, Huazhu Hotels Group
Oyo RoomOnline hoteling
PayTMFintechAlibaba, Berkshire Hathaway, Softbank
PayTM Malecommerce, retailAlibaba
PhonePeUPI paymentFlipkart
Pine LabsPOS devices
Policy BazaarOnline insurance
QuikrNews aggregation
Reliance Retail ecommerce and retailAmazon.com
ReNew PowerRenewable energy
RivigoLogistics
ShareChatSocial networkAlphabet, SnapChat, Microsoft
SnapdealeCommerceAlibaba
SwiggyFood deliveryTencent, Meituan, Hillhouse Capital 
UdaanB2B trading platformTencent
ZomatoFood deliveryAnt group, Alibaba, Shunwei Capital

Even Buffett’s Berkshire (ticker:s: BRK.A and BRK.B) have invested in PayTM. There will be a total of seven unicorns in India in 2020, and there will be only six in 2019. Catering delivery platforms Zomato, Paytm, ride-hailing service startup Ola, e-commerce company Flipkart, etc. will soon be listed.

China’s influence on Indian tech giants

The Indian emerging technology giants listed above are almost inseparable from the support of large sums of funds from the Chinese technology giants, and they are all major investors. These Chinese technology giants include Alibaba (ticker: BABA), Tencent (ticker: TCEHY), Xiaomi, and Fuxing. Among them, Alibaba and Tencent have invested the most funds on these emerging technology giants in India. After the China-India fallout last year and India completely banned Chinese software and Internet products, this wave of Chinese technology giants’ investment in India’s emerging technology giants has officially come to an end.

Starting in 2015, Tencent and Alibaba began to increase their bets in India. India had only 31 unicorn companies by the end of 2019, and nearly half of them were divided between Alibaba and Tencent. According to statistics in mid-2020, of the 30 Internet unicorns in India, 18 have Chinese shareholders.

US’s influence on Indian tech giants

Amazon (ticker: AMZN), Alphabet (ticker:s: GOOGL and GOOG), WalMart (ticker: WMT), Microsoft (ticker: MSFT) and Facebook (ticker: META) make huge investments of billions of dollars at every turn. In contrast, the investment amount of Chinese companies and Chinese capital is much smaller, but China’s capital coverage is wider than that of the US technology giants. Usually, Chinese companies will not obtain controlling rights or dominate operations. These are the biggest difference from U.S. giants.

In short, almost all the funds behind India’s emerging technology giants come from the Chinese and American technology giants; plus Softbank from Japan, there are very few exceptions. With no doubt, India stock market will grow in the future!

Disclaimer

  • The content of this site is the author’s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.
  • I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers’ direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.

Leave a Reply

Your email address will not be published.

error: Content is protected !!