Although Chinese investors entered India a bit late compared with peers from Europe and the US, they did not "miss the banquet" because India remains a hot destination for investment, a report released on Wednesday said.
The report, co-released by online technology media platform 36Kr.com and the India China Economic and Cultural Council, said that India is a large market because of its demographic dividend and the popularity of mobile Internet, which provide opportunities for investors similar to those in China four or five years ago.
The report showed that in the 12 months ended in January, 22 investors from Asia put money into 49 companies in India. The investors came from such markets as Japan, China, South Korea and Singapore, with total investment of $3.4 billion.
Investors such as China's online travel company Ctrip.com, Alibaba Group Holding and Tencent Holdings are important investors in India as well.
In January this year, Ctrip.com invested in Indian online travel company MakeMyTrip with $180 million. In August last year, Tencent led a $90 million funding round in Indian health app Practo. And so far, Alibaba has invested a total of $1 billion in Indian start-ups.
More Chinese investors are eyeing India as an important target, but there are challenges, the report said. They include an exodus of talent, because although India has cultivated a lot of Internet professionals, many have emigrated, the report said.
Also, the coverage of mobile networks in India remains underdeveloped, and some mobile communications operators are reluctant to invest in infrastructure. Further, poor online payment tools are a barrier for the further development of e-commerce, the report said.
Experts predict that China's private sector will invest heavily but cautiously in India's Internet leaders. Chinese companies will mainly focus on those that have been tested by U.S. or Japanese ventures.
