Chinese Investments targets start-ups to scale up in India

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The COVID-19 pandemic has redefined contours of business continuity to lead us to the era of ‘digiwork’. The demand placed on digital infrastructure has soared drastically. At the same time the Chinese investors have been making their presence felt in a big way in the Indian start-up ecosystem over the last few years. However, the recently amended FDI rules and the straining relationship following the recent border conflict between both the countries are likely to add roadblocks for Chinese investments in Indian start-ups.


With the majority of the big companies in China being state-owned, acquisitions of/investments in distressed assets by these companies during Covid-19 pandemic are seen as a potential threat and politically motivated move. In view of this, India amended its FDI policy in April 2020, which mandates government approval for all investments from nations with which it shares boundaries. Hence, with the amended FDI regulation, the companies heavily backed by Chinese investments are in a state of uncertainty for the capital raising.


Meanwhile, the Startup Association of India requested the Ministry of Commerce and Industry to review the amendment and sought start-ups raising money from existing Chinese investors to be kept out of the purview of this law. However, irrespective of the outcome, Chinese investments are likely to be clamped down, at least for some time with the latest border dispute taking anti-China sentiments to a new high. Indian start-ups are more likely to turn towards such non-Chinese investments.” 


Likewise a person would consider how to do cost optimisation and minimize complexities as the cyber crooks have increased their attack by sending sextortion emails over the last few days. A sextortion or porn scam email is where cybercriminals email you out of the blue to claim that they’ve implanted malware on your computer, and been able to keep tabs on your online activity, along with video recorded from your webcam for creating an embarrassing video that they’re going to send to your friends and family.…unless you pay them blackmail money, usually somewhere from $1,500 to $4,000, paid in bitcoins. 


Organisations are turning to chat, phones, email and telemedicine portals for remote counselling, health check-ups and diagnoses of employees. Digital channels are providing entertainment and online learning modules to families and children. There is a new environment that has ushered in the need to strengthen the cyber security framework.  IT security professionals who raise their game and protect their companies’ people, technology and data from new or heightened risks of more sophisticated cybercriminals will be crucial players in the economic turnaround of the businesses. 


The next target of the cyber crooks are gaming and video streaming as the Global Gaming Market to Witness a CAGR of 12% During 2020-2025 – Players Will Spend $4.5 Billion on Gaming in 2020. Rising internet penetration is driving the demand of the market. Developers are trying to stop hackers who search for vulnerabilities in a game’s code and use it to get special advantages, called cheats.


Last but not the least to secure the infrastructure, many organizations are frantically moving towards cloud computing and software products. As per a new IDC report, 64% of organizations in India are expected to increase their demand for cloud computing, while 56% are expected to demand for cloud software to support the new normal.

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