<ul><li><keyword id="2900267" type="PERSON" weightage="20" keywordseo="Byju">Byju</keyword>’s and <keyword id="6630114" type="UNKNOWN" weightage="20" keywordseo="unacademy">Unacademy</keyword> are reportedly in talks to acquire <keyword id="6495242" type="UNKNOWN" weightage="20" keywordseo="doubtnut">Doubtnut</keyword> — a doubt clearing app catering to students from sixth grade onwards for maths and science subjects. </li><li>Interestingly, all the three edtech startups have been funded by the venture capital firm Sequoia Capital. </li><li>Doubtnut took its total user count over 13 million before the COVID crisis led to an increase in online training. </li><li>According to the startup, 90% of its users come from Tier II and Tier III cities because of its multilingual offering – Doubtnut operates in 11 languages. </li></ul>As <keyword id="7881642" type="UNKNOWN" weightage="20" keywordseo="edtech-companies">edtech companies</keyword> gain in India, the spotlight has been on the two-year old <keyword id="4534291" type="PERSON" weightage="20" keywordseo="edtech-startup">edtech startup</keyword> Doubtnut – a doubt clearing app catering to students from sixth grade onwards for maths and science subjects. Byju’s and Unacademy are reportedly in talks to acquire Doubtnut. According to a TechCrunch <a href="https://techcrunch.com/2020/06/26/indian-edtech-giant-byjus-in-talks-to-acquire-doubtnut-for-more-than-125m/?guccounter=1&amp;guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&amp;guce_referrer_sig=AQAAAA_eEHq05jjJMajbbetpONqZnPW9GlDL6VnsgyKHALsGVixD9d9VwHwy2BiL4yg6fGRbsMzIugGeEYCPpcf_v8dADcL7EFbMLJNiycCJtDZrMl5f_-6J_WYDqhmUPpdrQXQ_deLXgbJAgM-W7kOjKCwgmLn8-P4IYm6BsNim4w74">report</a>, Byju’s is in advanced-stage talks to acquire Doubtnut for nearly $125 million, while Unacademy too is looking to buy the edtech startup. In January, Tencent invested $15 million in Doubtnut along with participation from its existing investors — AET, Japan, Sequoia Capital, Omidyar Network and Ankit Nagori of Cure.Fit. Interestingly, all the three edtech startups have been funded by the venture capital firm Sequoia Capital. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Users </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Valuation </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Doubtnut </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹5.5 lakh (FY19) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">13 million </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$50 million </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Byju’s </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,341 crore (FY19) ₹2,800 crore (FY20) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">50 million </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$10.5 billion </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Unacademy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹90.27 crore (FY19) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">13 million </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$500 million </td></tr></tbody></table>Sources: media reports Business Insider wrote to Byju's and Unacademy for their comments, while Unacademy refused to comment at this moment, we will update the copy with Byju's responses as they come in. What makes Doubtnut a profitable choice for Byju’s and Unacademy Doubtnut took its total user count over 13 million before the COVID crisis led to an increase in online training. The video sessions on the app explain the step-by-step process to solve a problem. The snapshots of the problem can be sent via the Doubtnut app, website or even WhatsApp. According to the startup, 90% of its users come from Tier II and Tier III cities because of its multilingual offering – Doubtnut operates in 11 languages. And its potential in reaching out to the next 400 million Internet users of India could be what got Byju’s interest. “We are planning to go international in the next few months but we are also going deeper in India. 65% of our students are outside the top 10 cities, that showed us it is an aspirational product for students who don’t have access to good education,” Divya Gokulnath, co-founder and director at BYJU’s told Business Insider in an earlier interview. As of now, the instant doubt resolution application has answered over 250 million queries across subjects such as mathematics, physics, chemistry, and biology. Targeting the smaller regions, Doubtnut could soon come up with content for state board schools. “The biggest challenge that students have while studying, online or offline, is doubt resolution. Nearly 80% of the time spent by the student is on practice and doubt resolution. We provide solutions using technology and content. We have the largest repository of video solutions in the world," Tanushree Nagori, co-founder of Doubtnut <a href="https://www.livemint.com/companies/start-ups/unacademy-byju-s-success-lifts-fortunes-of-edtech-start-ups-11582565410821.html">told</a> Mint in February. Byju’s and Unacademy both have the capital for acquisitions With the coronavirus lockdown and schools, colleges being shut, Indian edtech startups have seen an unprecedented boost in their numbers and investors too are betting big on the space. And both Byju’s and Unacademy have been at the forefront of raising big money from marquee investors. Recently, Byju’s raised an <a href="https://www.businessinsider.in/business/startups/news/byjus-is-now-a-decacorn-with-the-latest-investment-from-mary-meekers-bond/articleshow/76639112.cms">undisclosed amount of funding from BOND</a> – the global technology investment firm. This is BOND’s first investment in India. In February, Byju’s raised $200 million from the private equity firm General Atlantic. Meanwhile, Unacademy too secured a $110 million funding from Facebook and General Atlantic for over $500 million during the same time. See also: <a href="https://www.businessinsider.in/business/startups/news/paytm-exec-reveals-how-the-contactless-dining-project-was-executed-in-just-a-month/articleshow/76683954.cms">INTERVIEW: Paytm exec reveals how the contactless dining project was executed in just a month</a> <a href="https://www.businessinsider.in/careers/news/well-fargo-ey-goldman-sachs-and-others-looking-for-technical-analysts-and-finance-professionals/articleshow/76682176.cms">Hiring this week — Well Fargo, EY, Goldman Sachs and others are looking for technical analysts and finance professionals</a> <a href="https://www.businessinsider.in/tech/apps/news/four-types-of-chinese-apps-making-big-money-in-india-experts-believe-at-least-three-should-be-done-away-with/articleshow/76681232.cms">Four types of Chinese apps making big money in India — experts believe at least three should be done away with</a>

Here’s why Doubtnut is an attractive buy for Byju’s and Unacademy

New Delhi, Jan 31 () Edu-tech platform Doubtnut on Friday said it has raised USD 15 million (about Rs 107 crore) in a funding round led by Tencent.
 The series A round also saw participation from existing investors, Omidyar Network India, AET, Japan and Ankit Nagori (former Flipkart executive) along with Sequoia Capital India, a statement said.
 Doubtnut, which has over 1.2 million daily users, had raised pre-series A funding in March last year led by Surge (Sequoia Capital India's programme), Waterbridge Ventures, Omidyar Network India and AET, Japan, it added.
 "Doubtnut will use the funds to widen its pan-India distribution, build on its content repository to cater to a fast expanding target group, invest in strengthening its technology stack and scaling its team," it said.
 Set up in October 2017 by Tanushree Nagori and Aditya Shankar, Doubtnut currently caters to K-12, IIT JEE and NEET students. It offers a multi-lingual online learning platform that uses artificial intelligence and machine learning technologies, and provides video-based solutions in response to students' queries.
 Students have to send a photograph of the question they want to solve, and Doubtnut app provides a video of the solution while simultaneously suggesting other concept videos to help students learn the topic better. The app can read questions in 11 Indian languages.
 The company has over 13 million monthly active users across several platforms (web, app, Youtube and Whatsapp). It said it has witnessed 30X growth in its daily active users since March 2019.
 "...despite a massive growth in our user base, there is still a significant target audience that is yet to be tapped. We aim to use technology to provide a democratic, comprehensive and easily accessible education solution to all students - in the language and manner that they best understand," Doubnut co-founder Nagori said. SR RVK

Doubtnut raises USD 15 mn in funding led by Tencent

<ul><li><keyword id="301237" type="PERSON" weightage="20" keywordseo="James-Murdoch">James Murdoch</keyword>’s <keyword id="34499" type="POSITION" weightage="20" keywordseo="private-equity">private equity</keyword> firm looks to strengthen its investments in India</li><li>It had previously invested in India edtech startups Doubtnut and Harappa as well as news aggregator Dailyhunt</li><li>Murdoch is also launching a special purpose acquisition company in partnership with former Disney executive Uday Shankar</li></ul>British-American billionaire James Murdoch is looking to raise $150 million from half a dozen ultra-rich family offices, in order to further expand its private equity firm Lupa Systems. Lupa Systems has made several investments across India and US, and plans to use the fund to expand its Indian portfolio. The development was first <a href="https://www.bloomberg.com/news/articles/2021-06-20/james-murdoch-weighs-tapping-billionaire-families-for-india-bets">reported </a>by Bloomberg. The New York and Mumbai-based equity firm’s portfolio includes Gurugram-based edtech startup Doubtnut, online learning platform <a href="https://www.businessinsider.in/business/news/james-murdoch-led-lupa-systems-picks-up-majority-stake-in-harappa-education/articleshow/73160260.cms">Harappa Education </a>and India’s first vernacular unicorn <a href="https://www.businessinsider.in/business/startups/news/dailyhunt-josh-raises-100-million-from-qatar-investment-authority-just-two-months-after-google-and-microsoft-made-it-a-unicorn/articleshow/80744070.cms">Dailyhunt</a>. Notably, the former Morgan Stanley banker Nitin Kukreja is managing Lupa System’s operations in India. Besides this, it has also invested in US-based robotics startup Kinema, media platform <a href="https://www.businessinsider.com/james-murdoch-reportedly-bought-stake-in-vice-media-2019-10">Vice Media</a> AI-powered Virtual Artist platform Authentic Artists and synthetic data company Synthetaic. It has also invested in Norwegian drone technology company UBIQ Aerospace, Tribeca Film Festival and Art Basel. Murdoch is the son of media mogul Rupert Murdoch. He had<a href="https://www.businessinsider.com/meet-the-murdoch-family-rupert-murdochs-media-empire-heirs-2020-8"> cut ties</a> with his family’s media businesses such as News Corp and Fox Corp last year, after clashing over its editorial direction. He founded Lupa Systems in 2019 with $2 billion in proceeds from the $71 billion sale of most of the Murdoch family’s 21st Century Fox empire to Disney. According to previous media <a href="https://markets.businessinsider.com/amp/news/james-murdoch-s-lupa-systems-announces-new-partnership-with-uday-shankar-1029966485">reports</a>, Lupa Systems, in partnership with former Walt Disney Company Asia Pacific Chairman Uday Shankar, is also planning to raise $345 million through a special purpose acquisition company (SPAC) for his new media and technology venture named Seven Island Inc. Seven Island will focus on media, entertainment, consumer technology, healthcare and education industries in south and southeast Asia. The firm will lay particular focus on India. “Lupa Systems set up its India presence less than two years ago and has already created a promising portfolio of technology investments. Partnering with Uday [Shankar], to build ambitiously for the long term, will take us to another level,” Nitin Kukreja, managing partner of Lupa Systems India, said in January 2021. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/after-assam-up-law-commission-proposes-population-control/articleshow/83706798.cms">India’s most populous state is about to take some stringent measures to control population</a> <a href="https://www.businessinsider.in/careers/news/low-skilled-it-jobs-in-india-are-definitely-at-risk-as-per-different-reports/articleshow/83633565.cms">Whether it's half a million or three million — 'low skilled' IT jobs in India are definitely at risk</a> <a href="https://www.businessinsider.in/cryptocurrency/news/el-salvadors-bitcoin-experiment-is-gaining-momentum-even-if-the-world-bank-doesnt-want-to-lend-its-support/slidelist/83634654.cms">Here’s how El Salvador’s Bitcoin experiment is playing out so far — the good, the bad and the ugly</a>

James Murdoch plans to raise $150 million from ultra rich to invest in Indian startups

<ul><li>With consumer interest at the core of the consortium, the <keyword id="1464841" type="General" weightage="100" keywordseo="edtech" source="Orion">EdTech</keyword> companies have committed to observe and adhere to a common ‘Code of Conduct.’</li><li>It would establish a Two-tier Grievance Redressal Mechanism to ensure that the positive impact of the industry reaches every deserving consumer while protecting their interests and promoting their rights.</li></ul> Leading EdTech companies under the aegis of <keyword id="128625" type="General" weightage="20" keywordseo="Internet-and-Mobile-Association-of-India" source="Orion">Internet and Mobile Association of India</keyword> (<keyword id="149966" type="General" weightage="20" keywordseo="IAMAI" source="Orion">IAMAI</keyword>) today announced the formation of the India <keyword id="12934640" type="General" weightage="20" keywordseo="EdTech-Consortium" source="Orion">EdTech Consortium</keyword> (IEC). Aligned with the Government’s recent advisory, the IEC will ensure that every learner shall have access to quality and affordable education, which not only improves their academic performance but also makes them future-ready. With consumer interest at the core of the consortium, the EdTech companies have committed to observe and adhere to a common ‘Code of Conduct’ and establish a Two-tier Grievance Redressal Mechanism to ensure that the positive impact of the industry reaches every deserving consumer while protecting their interests and promoting their rights. Several EdTech entities have joined the IEC such as such as Byju’s, Careers 360,Classplus, Doubtnut, Great Learning, Harappa, Times Edutech &amp; Events Ltd, Scaler, Simplilearn, Toppr, Unacademy, upGrad, UNext Learning, Vedantu &amp; WhiteHat Jr. The move to set up IEC comes at a time when Indian EdTech players are creating immense value for the global audience. The disruptions led by the pandemic and subsequent lockdowns compelled both parents and educational institutions to implement tech-enabled learning solutions, thereby accelerating the growth of the EdTech sector. Indian EdTech operators have been solving for accessibility and affordability through quality courses from best teachers, instructors and faculty members, to ensure that students across all age groups are benefiting from the innovation in the education sector. This has elevated India’s position on the global map as an education hub. The overall Indian EdTech ecosystem impacts over 500M+ school students, college students and working professionals across India. At this scale, it is critical that the ecosystem follows a framework that will protect the rights of our learners and all EdTech companies are committed to this. Subho Ray, President, Internet and Mobile Association of India, said: “IAMAI and members of the India EdTech Consortium (IEC) are deeply committed to ensuring ethical standards to protect learners on online educational platforms. IEC seeks to empower the learners by not just helping them make informed decisions but by also having their grievances redressed timely. The formation of this self-regulatory body is an important step towards protecting learners as more and more students, teachers and stakeholders are becoming a part of the online education ecosystem.” Commenting on the formation of the IEC, Divya Gokulnath, Co- founder of Byju’s said, “We are completely aligned with the Government's principles on safeguarding consumer interests and welcome the creation of guidelines that help students reach their learning goals in a manner that makes them future ready and conceptually strong. We have always believed that the student should be at the center of the education system and as educators we must do everything possible to create the right set of processes and methods to empower and enhance their learning." Vamsi Krishna, Co-Founder &amp; CEO, Vedantu, said, “The Indian EdTech sector has grown considerably over the last two years with funding and consolidations strengthening the ecosystem. However, while business growth is critical, so is consumer protection since this will allow students and parents to make more informed decisions about the future. Therefore, as part of the newly institutionalized IEC, we will build a sounder and more ethical ecosystem for students so that we can ensure their safety and mitigate any risks they may encounter in their journey to be future-ready.” Mayank Kumar, Co-Founder &amp; MD upGrad and Co-Chairperson, IAMAI EdTech Committee, said, “We are honored to be a part of the IEC at a time when the EdTech sector is accelerating its growth momentum. The last two years have witnessed the rise of online education as a connecting bridge to access flexible and quality education for students as well as working professionals. With the sole purpose of improving the delivery of education services, it is now crucial for us to foster and sustain stakeholder trust by safeguarding their interest as a practice. This initiative will go a long way in strengthening the EdTech sector and establishing India as the Teaching capital of the world.” In the recent past, the education sector has undergone significant transformation and EdTech has supplemented in driving new-age academic excellence. Having created a significant impact by offering quality and affordable education services, EdTech entities have also improved learnability &amp; employability for users to address the evolving needs of the job market. The adaptive learning solutions have ensured that learners are not merely ‘knowledge receivers’ but ‘knowledge creators’ as well. The sector has also created large number of employment opportunities. However, as the sector and end users grow at a fast pace, it is critical to establish a standard code of conduct for all Indian EdTech entities to adhere to and ensure that ‘learners’ remain at the core of all the business practices.

IAMAI establishes India EdTech Consortium to uphold Code of Conduct by  EdTech Platforms

<ul><li><keyword id="6357120" type="DEFINITION" weightage="20" keywordseo="paytm">Paytm</keyword> has outrightly denied reports that one of its majority shareholders <keyword id="9541717" type="UNKNOWN" weightage="20" keywordseo="Ant-Group">Ant Group</keyword> may sell its entire 30% stake in the startup. </li><li>A Reuters report stated that amid growing tensions between India-China, Ant Group was mulling a possible exit from the Vijay Shekhar Sharma-led company. </li><li>With rising border tensions between India and China, Indian startups with Chinese investments have come under a lot of scrutiny. </li></ul>Indian digital payments leader Paytm has denied reports that one of its majority shareholders Ant Group may sell its entire 30% (worth $4.8 billion) stake in the startup. A <a href="https://in.reuters.com/article/ant-group-paytm/exclusive-chinas-ant-considers-paytm-stake-sale-amid-tensions-with-india-sources-idINKBN28C17R">Reuters report</a> citing sources stated that amid growing tensions between India-China, Ant Group was mulling a possible exit from the Vijay Shekhar Sharma-led company. The Indian government has so far banned almost <a href="https://www.businessinsider.in/tech/apps/news/indian-government-has-banned-220-chinese-apps-so-far-including-pubg-mobile-aliexpress-tiktok-shareit-and-more/articleshow/79390031.cms">220 Chinese apps</a> this year. However, a Paytm spokesperson denied the report. "The information is absolutely false and misleading. There has been no discussion with any of our major shareholders ever, nor any plans, about selling their stake or becoming the controlling shareholder. Our mission is to empower half a billion Indians with digital financial services and pursue the vast opportunity presented by the digital financial revolution in our country. We are seeing a dramatic increase in revenues and acceleration of our path to breakeven,” a Paytm spokesperson told Business Insider. The rising tension between India and China at the Ladakh border has led the government in New Delhi to crack down on foreign direct investments (FDI) from China. Paytm had earlier <a href="https://www.businesstoday.in/current/corporate/paytm-founder-vijay-shekhar-sharma-hails-ban-on-59-chinese-apps-faces-backlash/story/408416.html">faced backlash</a> on Twitter as well for its investments from the Chinese giant. Chinese investors have pumped in an estimated $4 billion into India’s tech startups, which includes bets on 18 out of the country’s 30 unicorns, according to a Gateway House report. The scepticism around Chinese investments in India has been rising, which affects some of the biggest startups in India like Paytm, Ola, Byju’s and more. China’s biggest funds and their bets in India <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tencent </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Byju’s, Ola, Dream11, Flipkart, Hike, Swiggy, Udaan, Niyo, Gaana, Doubtnut, Khatabook, MX Player, Pine Labs, Pocket FM, Practo, MyGate. </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Alibaba </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Paytm, Bigbasket, Paytm Mall, Snapdeal, Zomato, Healofy, Ticketnow, Rapido, Vidooly, Xpressbees </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Xiaomi </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hungama, Sharechat, Rapido, ZestMoney, Oye! Rickshaw, City Mall, Marsplay Internet </td></tr></tbody></table> SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/breather-for-flipkart-as-supreme-court-stays-order-for-cci-probe-over-alleged-abuse-of-dominant-position/articleshow/79528982.cms">Breather for Flipkart as Supreme Court stays order for CCI probe over alleged abuse of dominant position</a> <a href="https://www.businessinsider.in/business/corporates/news/burger-king-in-india-isnt-competing-with-just-dominos-or-mcdonalds-the-roadside-chola-bhatura-vendor-is-a-peer-too/articleshow/79526057.cms">INTERVIEW: Burger King in India isn’t competing with just Domino's or McDonald’s⁠, the roadside chola bhatura vendor is a peer too⁠</a>

Paytm denies report that Ant Group may dump its stake worth almost $5 billion as India-China tension escalates

<ul><li>The recent standoff at the Indo-China border has already seen a call for ban on Chinese products as well as uninstalling Chinese or Chinese-funded apps in India. </li><li>Experts believe that this will put a hold on further tech investments in India and thus, startups need to prepare themselves.</li><li><keyword id="417650" type="PERSON" weightage="20" keywordseo="Chinese-investors">Chinese investors</keyword> have pumped in an estimated $4 billion into India’s tech startups which includes bets on 18 out of the country’s 30 unicorns.</li></ul>From the India-China tensions at the border to the Indian government’s recent restrictions on FDI stating that prior government approval is required for any investment from a bordering country, the startup ecosystem has a lot to worry about. The rising scepticism about China and its investors affects some of the biggest startups in India like <keyword id="6357120" type="DEFINITION" weightage="20" keywordseo="paytm">Paytm</keyword>, Ola, Byju’s and more. China’s biggest funds and their bets in India <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tencent </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Byju’s, Ola, Dream11, Flipkart, Hike, Swiggy, Udaan, Niyo, Gaana, Doubtnut, Khatabook, MX Player, Pocket FM, Practo, MyGate. </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Alibaba </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Paytm, Bigbasket, Paytm Mall, Snapdeal, Zomato, Healofy, Ticketnow, Rapido, Vidooly, Xpressbees </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Xiaomi </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hungama, Sharechat, Rapido, ZestMoney, Oye! Rickshaw, City Mall, Marsplay Internet </td></tr></tbody></table>Source: Gateway House Tensions at the borders and India’s tech ecosystem The recent standoff at the <a href="https://www.businessinsider.in/policy/foreign-policy/news/three-reasons-why-china-showed-aggression-against-india-on-border-according-to-a-former-diplomat/articleshow/76462632.cms">Indo-China border</a> has already seen a call for ban on Chinese products as well as uninstalling Chinese or Chinese-funded apps in India. Experts believe that this will put a hold on further tech investments in India and thus, startups need to prepare themselves. “The immediate impact of this can be observed in business relations as well, with contract cancellations, trade deficit and fundings being put on hold. To mitigate this direct impact on the startup ecosystem, startups will have to scout for other avenues for big-ticket investments while seeking support from investors from newer geographies. Companies which fall under the portfolio of Chinese investors will also have to look for new alternatives as their transactions will get delayed due to these macro events,” said Roma Priya, Founder of Burgeon Law. Chinese investors have pumped in an estimated $4 billion into India’s tech startups which includes bets on 18 out of the country’s 30 unicorns, according to a Gateway House report. And even though some of India’s companies like Sharechat even have ‘<keyword id="3758" type="ENTERTAINMENT" weightage="20" keywordseo="Made-in-India">Made in India</keyword>’ in their Google Play store listing, the funding for the startup is from China. What makes <keyword id="417799" type="PERSON" weightage="20" keywordseo="Chinese-investment">Chinese investment</keyword> attractive? With India having the next big internet users, Chinese funds have been betting on the country’s virgin internet users and the lack of an Indian major investment fund only aids their growth. Most of India’s startups – from Paytm to Ola and Swiggy, Zomato – are still reporting heavy losses, which means they would require investments with minimal investor pressure. “China provides the patient capital needed to support the Indian start-ups, which like any other, are loss-making. The trade-off for market share is worthwhile,” said a report by Gateway House. The damage was done from even before the border clash Earlier in April, the change in FDI regulations said that prior approval of the Indian government will now be required for FDI into India (direct or indirect) by an entity of a country which shares a land border with India, i.e., China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar and Afghanistan. And this would have a direct impact on India’s startup ecosystem which relies on Chinese investments. “Chinese investors like Alibaba, Tencent and others will be heavily impacted. (i) Rights issuances; (ii) share buybacks; (iii) exits of existing investors from an Indian company which result in an increment in a Chinese investor’s stake will now require prior approval of the Indian government, although there may be no fresh inflow of FDI. Private equity and venture investors may not be able to effectively exercise call options, rights of first offer, anti-dilution or ratchet provisions.” said a report by the law firm Majmudar &amp; Partners. However, China has for long now routed its investments through subsidiary companies. “Chinese funds and companies often route their investments in India through offices located in Singapore, Hong Kong, Mauritius etc.: for example, Alibaba’s investment in Paytm was by Alibaba Singapore Holdings Pvt. Ltd. These don’t get recorded in India’s government data as Chinese investments,” said a report by Gateway House. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/news/heres-a-look-at-some-of-the-indian-smartphone-companies-that-could-make-a-comeback/slidelist/76465362.cms">Indian mobile companies that Boycott China campaign can bring back</a> <a href="https://www.businessinsider.in/thelife/news/here-are-the-five-books-that-will-help-you-decode-the-india-china-relations/articleshow/76462237.cms">Here are the five books that will help you decode the India China relations — beyond just the border dispute</a>

You Searched For "doubtnut" and got 6 results

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