Its plan to back ventures that are far earlier in their life cycle will make it potentially the first strategic investor from the Middle Kingdom to enter the Indian startup circle
Fosun International has exciting news for the Indian startup ecosystem! The Chinese investment company has decided to invest in early-stage startups in the country. The investment will be spearheaded by Fosun RZ Capital — an investment arm of Fosun International, reports The Economic Times.
The Shanghai-based investment firm has, till date, made only mid to late-stage bets. Fosun’s Indian portfolio consists of startups like Delhivery, MakeMyTrip, Kissht and Ixigo.
Its plan to back ventures that are far earlier in their life cycle will make it potentially the first strategic investor from the Middle Kingdom to enter the Indian startup circle.
Fosun RZ Capital, which entered India about 18 months ago, has made a mix of mid-to-late-stage and public equity investments in the country. However, now the firm is looking towards seed and angel round investments.
In talks with the publication, Tej Kapoor, managing director and head of Fosun RZ Capital India, said the funding will be based on sector-specific knowledge that the group has gained from its rich experience in the Chinese market.
The possible reasons behind Fosun’s move is to pick up stakes in companies operating in a startup landscape known for its outsized valuations. Another reason could be the firm’s integrated approach – which means it is looking to create an ecosystem where its portfolio companies can work with each other, stated the report.
Meanwhile, the company will continue investing in mid to late-stage deals, but the main focus will be on new-found interest in early stage startups. “Around 70% of our focus will go into early stage, and help these companies grow… We are close to completing half a dozen investments and will keep on looking for more of these opportunities,” said Kapoor.
