India can benefit from China’s regulatory crackdown, says Ola chief

Receive free Indian business and financial updates

Founders of one of India’s largest start-ups take advantage of “unique opportunities” to attract foreign investors to national entrepreneurs as regulatory turmoil threatens global funding from China I urged you to do it.

Babish Agarwal, CEO of Ora, a SoftBank-backed ride-sharing group, said startups are investing in India as Beijing’s crackdown wipes billions of dollars from the value of big Chinese companies. He said that the benefits of India should be announced.

“In general, India, unlike China, is a much more rule-of-law, market-driven economy,” he said. “The responsibility is for Indian entrepreneurs to actually engage with investors and tell them about both their business and the Indian story.

“Investors are getting smarter about India’s opportunities, which have a different texture than China’s opportunities, but are very similar in terms of size,” he added.

Financing by Indian start-ups surged this year. According to data provider Tracxn, the company raised a record $ 13.7 billion from a record $ 7.2 billion in the third quarter of 2021.

Ora’s electric vehicle unit raised $ 200 million last week from investors such as Softbank and New York-based hedge fund Falcon Edge Capital, which was worth $ 3 billion.

India’s public market has also been bullish for 18 months, supported by a steady influx of foreign investors in August and September.

While the country has long been second only to China as an investment destination, entrepreneurs are expected to overtake China in the coming years, with stable comparative regulation, accelerated digital adoption, and nation’s population growth. ) Wants to change that dynamic.

Many Indian tech companies, such as hotel booking platforms Ola and Oyo, are planning to take advantage of the bullish mood by launching in the coming months. Aggarwal said the company is “certainly” planning an initial public offering by the end of next year, but declined to comment further.

According to people familiar with the matter, Ora is preparing to submit listing documents and is seeking to raise $ 2 billion in funding.

The company’s core ride-sharing business saw a sharp decline in mobility in 2020, and this year again in India. Brutal second wave.. Aggarwal said the business has recovered to pre-Covid levels and is profitable.

Ora is also expanding into the production of electric scooters, and plans to start delivering the S1 model from this month.

India is the world’s largest market for motorcycles, and cheap and functional models dominate the market where cars remain affordable for many.Indian authorities have announced a series of grants to encourage Shift to electricity Beyond gasoline-burning cars to deal with the world’s worst air pollution levels.

However, Aggarwal’s ambitions face many challenges. So-called gig economy companies such as food delivery groups Zomato and Ola, who treat drivers as self-employed “partners” rather than employees, are facing constant pressure to improve the situation.

Important electric vehicle infrastructure, including charging points, remains undeveloped, but Aggarwal said this will continue as the market expands.

“The surrounding infrastructure is also driven by the power of the market … As consumer demand grows, so does the charging ecosystem,” he added. “We believe that the market and consumers are ready to adopt electric vehicles all at once, especially in the field of motorcycles.”

Weekly newsletter

Your important guide to the billions that have been created and lost in the Asian Tech world.Exclusive news, vivid analysis, smart data, a carefully selected menu of the latest technical topics from FT and Nikkei

Sign up here with just one click

India can benefit from China’s regulatory crackdown, says Ola chief Source link India can benefit from China’s regulatory crackdown, says Ola chief

Related Articles

Back to top button