DAVOS – Global private equity firm General Atlantic plans to make লাভ 2 billion in India and Southeast Asia in the next two years, making the region’s startups more attractive after a valuation cut, a senior executive told Reuters.
General Atlantic is in initial investment talks with about 15 companies in sectors including technology, financial services, retail and consumer, Sandeep Naik, head of its business in India and Southeast Asia, said in an interview.
The startup market, especially in India, is going through a rough patch. After raising a record 35 billion in 2021, founders are fighting to attract cash, creating fears of undervaluation and forcing some to cut jobs.
After investing just 190 190 million in Indian startups in 2021, its lowest annual figure, General Atlantic is now ready to loosen its purse strings, Naik said in an interview at the World Economic Forum at the Swiss ski resort in Davos.
“The reality is being established. We were waiting for the creation of values. We are ready now, ”Naik said of General Atlantic’s plans for India and Southeast Asia, most of which have more than $ 4.5 billion invested in India.
“We are very interested in India, Indonesia and Vietnam,” Naik said, declining to name any organization.
General Atlantic’s existing high-profile Indian investments include educational technology companies like Baiju’s, which offer online tutoring in a country where Internet and smartphone usage is on the rise, valued at about $ 22 billion.
It has also invested in Reliance Retail, India’s largest retailer, and its portfolio in Southeast Asia includes Indonesian food and beverage retailer PT MAP Boga Adiperkasa and Philippine social entertainment platform Kumu.
Many technology companies around the world have suffered in recent weeks as the Ukraine conflict and rising interest rates hurt investor sentiment. Softbank of Japan reported a record loss of .2 26.2 billion in its Vision Fund investment arm.
Given the difficult market environment and declining valuations, General Atlantic is advising all its portfolio companies to look at consolidation opportunities.
“Now is the best time to unite … the stronger the stronger,” Naik said.
(Reporting by Aditya Kalra in Davos; Editing by Alexander Smith)