General Atlantic is in early-stage investment talks with about 15 companies in sectors including technology, financial services, retail and consumer
General Atlantic is in early-stage investment talks with about 15 companies in sectors including technology, financial services, retail and consumer
Global private equity firm General Atlantic plans to raise $2 billion in India and Southeast Asia over the next two years as startups in the region become more attractive, a senior executive told Reuters. Reuters,
General Atlantic is in early-stage investment talks with about 15 companies in sectors including technology, financial services, retail and consumer, its head of business in India and Southeast Asia, Sandeep Naik, said in an interview.
The market for startups, especially in India, is going through a tough time. After raising a record $35 billion in 2021, founders are struggling to attract cash, fearing low valuations and forcing some to cut jobs.
After investing just $190 million in Indian startups in 2021, its lowest annual figure ever, General Atlantic is now loosening its purse strings, Mr Naik said in an interview at the World Economic Forum at the Swiss ski resort of Davos. ready to do.
“Realism is coming. We were waiting for the value creation to happen. We are ready now,” Mr. Naik said of General Atlantic’s plans for India and Southeast Asia, with an investment of over $4.5 billion , mostly in India.
“We are very optimistic about India, Indonesia and Vietnam,” said Mr. Naik, refusing to name any companies he is looking into.
General Atlantic’s current high-profile Indian investments include education technology companies such as Byju’s, which provides online learning in a country where Internet and smartphone use is booming and is valued at around $22 billion.
there is also Invested in Reliance RetailIndia’s largest retailer, and its portfolio in Southeast Asia includes Indonesian food and beverage retailer PT MAP Boga Adiparcasa and social entertainment platform Kumu in the Philippines.
Tech companies globally have suffered in recent weeks as the conflict in Ukraine and rising interest rates dented investor sentiment. Japan’s SoftBank has reported a record $26.2 billion loss in its Vision Fund investment arm.
Given the difficult market environment and falling valuations, General Atlantic is advising all its portfolio companies to explore consolidation opportunities.
“Now is the best time to consolidate… the stronger gets stronger,” Mr. Naik said.