GCC Based Investors are Pouring Huge Capital in Indian Start-Up Ecosystem

India and the Middle East region share a strong historical bond. Since silk road days, the two were trading partners. In recent years, the relationship has further deepened with annual trading reaching around ~ USD 120 billion.

In recent years, a new dimension has emerged in India’s ties with the region. GCC-based investors & sovereign wealth funds are increasingly drawn towards the Indian start-up ecosystem. In 2020 defying the covid blues, GCC-based funds invested USD 7.5 billion in the Indian start-up ecosystem.  A sizable portion of the investment was directed towards Reliance-backed Jio network.) In 2019, GCC-based investors poured in around USD 1.5 billion in the Indian start-up ecosystem. 

This is a gradual shift from the earlier stance when Middle Eastern investors mostly preferred to invest in US-based start-ups. The trends are now altering and investors are now drawn towards China and India, wherein the digital ecosystem and consumer tech are maturing. The pandemic has also helped the technology and start-up space in the country as it is now helping digital entrepreneurs to scale up fast. 

Today most of the major Indian unicorns such as Oyo, Zomato, Flipkart, Fresh2Home, Policy Bazar, Lenskart, etc have received funding support from GCC-based investors. To scout lucrative opportunities in India’s growing tech ecosystem, GCC-based venture funds and sovereign entities are also setting up their offices in India. 

Recent GCC-Based Investments in Indian Start-Up

• Abu Dhabi Investment Authority (ADIA) invested USD 20 million in the Indian digital payment start-up Mobikwik. Earlier ADIA has invested USD 750 million in the Reliance Jio platform for 1.16% stake. 
• Qatar Investment Authority (QIA) the wealth fund of the Qatari government has invested ~ USD 100 million in Byju, India’s leading tech start-up. 
• Abraaj Group has invested USD 150 million in online grocery company, Big Basket. 
• Bahrain-based Investcorp has invested USD 300 million in the Indian digital ecosystem. The company is planning to double down on the investments in the next 3-4 years. 
• QIA has invested USD 175 million in Rebel Food, a leading cloud kitchen start-up that runs successful brands such as Faasos, Behrouz Biryani, etc.  

UAE and GCC offers expansionary ground

The GCC-India ties are not just unidirectional. Indian start-ups are also setting up in UAE and the GCC region to expand internationally. In 2012, Zomato became the first major Indian start-up to enter the Middle East market. In the next 7 years, the food delivery successfully scaled up in the region and eventually was sold at a whopping price of USD 222 million. In 2019, OYO entered the UAE market and soon registered 12,000 hotel rooms across 150 hotels. Likewise Indian eyecare e-commerce start-up Lenskart is eyeing a USD 50 million investment in the region. 

The growing presence of Indian start-ups is not limited to the presence of vast Indian expatriates in the region and meaningful historical ties. The region also offers a conducive ground to grow and scale-up for Indian entrepreneurs. As per capita income in the GCC is higher, the profitability and ROIs are also higher. 

How the India Watch can Help?

The India watch is an India-centric Business Research and Advisory. We help domestic and international enterprises with tailor-made market intelligence and business consulting solutions. Our clients include corporates, investors, sovereign agencies, and business associations. 

GCC-based investors, who are looking to invest in the Indian start-up ecosystem, can avail of our research and advisory solutions. Through our custom services, we can help investors can gain a better understanding of the Indian market, evaluate the target industry, and get in-depth insights on the potential venture. 

Our data-backed insights and research solutions can bridge the information gap and help investors make better decisions. 

• Industry analysis| Growth forecasting| Growth driver assessment 
• Customer assessment studies
• Market share & segmentation analysis 
• Policy research| business set-up assistance| Regulatory Insights
• Due diligence| Risk evaluation| 
• Investor decks| Thematic reports| Content marketing 

Besides, working on a project basis, we also work with clients on a retainership model. Investors with regular business interests in India can hire our services as their knowledge partner. As knowledge partners, we can take care of their data and insights requirements on the Indian market. For more details, drop us a mail at Info@theindiawatch.com