At a time when investors are reluctant to spend more money on startups, General Atlantic, a global private equity firm, said it plans to invest $2 billion into India and Southeast Asia over the next two years.
According to Sandeep Naik, head of General Atlantic’s business in India, the firm is in early-stage investment talks with about 15 companies from various sectors such as technology, financial services, and retail and consumer. General Atlantic is yet to reveal the names of the companies it considers.
The news comes as a relief to the Indian Startup Ecosystem which is currently on a rough patch. Founders have been struggling to attract cash since the record $35 billion investment in 2021. Moreover, fears of lower valuations and layoffs loom over the startups. Across the globe, many tech companies have suffered in recent weeks due to the conflict in Ukraine and investors backing off due to rising interest rates. Japan’s SoftBank has reported a record loss of $26.2 billion at its Vision Fund investment arm.
In 2021, General Atlantic had invested $190 million in Indian startups. In India, General Atlantic’s existing high-profile investments include edtech company Byju’s, and India’s largest retailer Reliance Retail. In Southeast Asia, General Atlantic has invested in Indonesian food and beverage retailer PT MAP Boga Adiperkasa and social entertainment platform Kumu.
Given the current tough situation, General Atlantic has advised all its portfolio companies to look at consolidation opportunities.
