General Atlantic plans to invest $2 billion in India & Southeast Asia

By bfnadmin  | Date: 2022-05-23

General Atlantic plans to invest $2 billion in India & Southeast Asia

American private equity company General Atlantic plans on investing $2 billion into India and Southeast Asia over the coming two years intending to leverage the descending valuations of the region’s startups, making it a lucrative landscape.

According to Sandeep Naik, Head of General Atlantic’s business in India and Southeast Asia, the equity firm has already commenced early-stage investment talks with over 15 companies across retail, technology, financial services, and consumer segments.

Following the company’s $190 million investment in Indian startups in 2021, General Atlantic intends to broaden its investment capabilities.

Speaking on the firm’s plans to foster growth in India and Southeast Asia, Naik mentioned that General Atlantic has investments exceeding $4.5 billion, majority distributed in India betting on the emerging landscape including Indonesia, and Vietnam.

Some of General Atlantic’s high-profile Indian investments include the EdTech space, such as Byju’s, which is an online tutoring platform in India – where the use of smartphone and internet continue to penetrate at a faster pace and is valued at roughly $22 billion.

Besides, the private equity firm has also invested in the country’s largest retailer, Reliance Retail with an extensive portfolio in Southeast Asia comprising of investments in food and beverage retailer PT MAP Boga Adiperkasa of Indonesia and Filipino social entertainment platform Kumu.

Despite a record high capital influx worth $35 billion in 2021, founders are addressing a major challenge in sourcing cash, triggering concerns associated with insufficient valuations, and fears of job cut, showcasing a rough patch for the Indian market for startups.

Worldwide, several tech companies have undergone disruption in the recent weeks after the conflict in Ukraine broke out with soaring interest rates tormenting investors.

In the wake of a war-like situation, Japan’s SoftBank reported enormous losses of $26.2 billion for the investment arm Vision Fund.

In line with the current market environment and plunging valuations, General Atlantic is encouraging its portfolio companies to closely eye strategic partnerships for further strengthening the business presence.

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