India’s ‘huge’ startup market is worth betting on: Facebook co-founder

He believes much of the country’s growth will come from enterprise technology companies – those that provide services to businesses

Photo: Forbes


Published: Mon 10 Oct 2022, 08:25

Facebook co-founder Eduardo Saverin recently hailed India’s start-up potential, saying that while India’s start-up scene is a few years behind China’s, it’s a market that is always worth betting.

He said this during a panel discussion at the Forbes Global CEO Conference held last month in Singapore. Saverin added that his investment firm, B Capital, was deploying “a lot of dollars” in India and thinking about the long-term success of new ventures there.

The Facebook co-founder believes that much of the growth in India will come from enterprise technology companies – those that provide business services. He said his company had put money into an electronic health records company, as well as a contract management company.

“I think India is a huge market with huge potential,” CNCB said, in response to a question about why India’s startup ecosystem hasn’t generated better returns.

“And I think as the market continues to mature and you get into a better macro environment, that’s a market to bet on, combined with Southeast Asia.”

India has a very vibrant start-up scene, being the third largest ecosystem for startups in the world: over 77,000 such companies. Besides India, Singapore remains another attractive destination for investors.

Last week, EnterpriseSG (Enterprise Singapore) announced that venture capital funding in Singapore had increased by 54% in the first six months of this year to reach SG$8.18 billion ($5.71 billion ) compared to the same period last year.

The funding amounted to 14.7 billion Singapore dollars ($10.26 billion) for the whole of 2021 and grew by 45% annually between 2017 and 2021. The government agency said that Singapore’s innovation and startup ecosystem has continued to experience strong growth over the past five years. , remaining vibrant and resilient, despite the pandemic.

Indian companies have often been attracted here due to factors such as favorable tax rates, strong infrastructure, stable government, simple business rules and legal environment.

Since the year 2000, more than 8,000 Indian companies have established an entity in Singapore. Flipkart, Mercator and Tata Consultancy Services (TCS) are examples of established Indian companies operating (in some way) here.

“Stimulating innovation and supporting startups is and will continue to be one of our top priorities over the next decade. Entrepreneurship is what we need to form the foundation of our innovation economy,” said Edwin Chow, Deputy CEO (Innovation and Enterprise), EnterpriseSG.


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