Investors choose India over China for startups in 2021 tech boom

This year 44 Indian unicorns – privately held startups valued at more than US$1 billion – were minted as investors piled US$35 billion into the ventures

Foreign investors are choosing India over China because of a clampdown by Beijing on runaway growth in the internet sector, and reining in of big businesses

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A store for beauty products platform Nykaa in Mumbai, India, where startup investments tripled in 2021. Photo: AFP

Published: 11:59pm, 31 Dec 2021Updated: 4:32pm, 1 Jan 2022

Sumit Gupta has had a big year – turning 30, getting married and seeing his startup become one of India’s newest tech unicorns.

Hampered by the coronavirus pandemic and too busy expanding and getting funding for his cryptocurrency platform CoinDCX, his team finally grabbed a few days on the beach in Goa to celebrate recently.

“That was very delightful to everyone,” Gupta told AFP. “It’s been a very, very exciting journey. I’ve learned a lot … The future of India is very bright.”

This year 44 Indian unicorns – privately held startups valued at more than US$1 billion – were minted as investors piled money into a country long overlooked despite its vast potential.

A QR code for Paytm, an Indian digital startup, is displayed in a poultry shop in Mumbai. Photo: AFP

Overseas funds put more than US$35 billion into Indian startups in 2021 – a tripling from 2020, according to data compiled by Tracxn – buying into everything from fintech and health to gaming.