However, Alibaba and Tencent are not the only Chinese enterprises investing in India. Xiaomi, already an established smartphone merchant in India, has invested more than US$25 million in mobile app chalo.com and entertainment company Hungama. Chinese conglomerate and investment company Fosun has invested more than US$400 million in logistics company Delhivery and booking website ixigo.
India share many commonalities with China. The second most populous country in the world with a population of 1.3 billion is expected to overtake China by 2027. Opportunities abound in India, where untapped market potential is comparable to that of China, with an estimated 450 million active users accessing the internet on a monthly basis in India.
Additionally, Chinese companies are looking towards investments in emerging markets on account of a slowing economy. The ongoing US-China trade war has led to heightened suspicion of Chinese involvement in the US, previously a top destination for Chinese funds.
Experts believe that Chinese investors are drawing parallels between China in the 2000’s and present-day India. These investors see similarities between India’s startups and the companies that became Chinese tech giants. Chinese investors hope to invest in the right companies, to have a hand in creating India’s own Alibaba or Tencent.