General Atlantic is in initial investment talks with about 15 companies in sectors including technology, financial services, retail and consumer goods, said Sandeep Naik, the head of its India operations. and in Southeast Asia, in an interview.
The startup market, particularly in India, is going through a rough patch. After raising a record $35 billion in 2021, founders are struggling to attract cash, raising fears of falling valuations and forcing some to cut jobs.
After investing just $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 with the World Economic Forum in the Swiss ski resort. from Davos.
“The realism is setting in. We’ve been waiting for the value creation to happen. Now we’re ready,” Naik said of General Atlantic’s plans in India and Southeast Asia. The company has invested over $4.5 billion, mostly in India.
“We are very optimistic about India, Indonesia and Vietnam,” Naik added, while declining to name any companies she is considering.
General Atlantic’s current Indian investments include education technology companies such as Byju’s, which offers one-to-one online tutoring in a country where internet and smartphone use is booming and is valued around 22 billions of dollars.
It has also invested in Reliance Retail, India’s largest retailer, and in Southeast Asia its portfolio includes Indonesian food and beverage retailer PT MAP Boga Adiperkasa and social entertainment platform Kumu in the Philippines.
Many tech companies around the world have suffered in recent weeks as the conflict in Ukraine and rising interest rates have affected investor sentiment. The Japanese company SoftBank announced a record loss of 26.2 billion dollars for its Vision Fund investment arm.
Given the difficult market environment and falling valuations, General Atlantic advises all companies in its portfolio to explore opportunities for consolidation.
“Now is the best time to consolidate….Strongs get stronger,” Naik said.