BEIJING: China’s manufacturing activity fell for a fourth straight month in July while the services and construction sectors teetered on the brink of contraction, official surveys showed on Monday (Jul 31), threatening growth prospects for the third quarter. Construction sector activity for July was its weakest since COVID-19-related workplace disruptionsContinue Reading
Fahmi dismissed concerns raised over increased government scrutiny of online content, and denied issuing orders to take down several opposition-linked news sites and social media accounts in recent weeks. The take-downs, he said, were likely to have been made in response to complaints made by ordinary users for violating socialContinue Reading
NEW DELHI: India has asked Japan and South Korea to renegotiate their free-trade agreements (FTAs) with the South Asian nation to make it “more balanced and equitable”, India’s trade minister said on Thursday (Jul 27), amid a widening trade gap with the countries. “Japan and Korea – we opened ourContinue Reading
“China’s export dominance is ebbing, creating opportunities for other emerging market countries to fill the gap, including Mexico, India, and Southeast Asian nations,” said Malcolm Dorson, a New York-based senior portfolio manager at ETF manager Global X. The scale of change needed in global supply chains could drive such capitalContinue Reading
Pan, 60, was elevated to the central bank’s top political post this month. On Tuesday, he was confirmed as the replacement for respected governor Yi Gang, becoming the first person to take over both posts since Yi’s predecessor Zhou Xiaochuan. Pan played a key role in the restructuring and listingContinue Reading
More broadly, Xi’s administration blames widening social disparities in part on the internet boom, particularly in the pandemic era, and is moving to address any public discontent that could threaten its authority. That led to the “common prosperity” program, which has faded from public view but still guides the activitiesContinue Reading
MUMBAI: The world’s biggest rice exporter India has banned some overseas sales of the grain “with immediate effect”, the government said, in a move that could drive international prices even higher. Rice is a major world food staple and prices on international markets have soared to decade highs as theContinue Reading
TOKYO: Japan’s core inflation stayed above the central bank’s 2 per cent target in June for the 15th straight month but an index stripping away the effect of energy costs slowed, data showed, suggesting that prolonged commodity-driven price pressures may have peaked. Yet, with services price growth also slowing lastContinue Reading
SHENYANG, Liaoning: Cattle wander between the concrete shells of half-finished mansions in northeastern China, some of the only occupants of a luxury complex whose crumbling verandas and overgrown arches are stark symbols of a housing market crippled by its own excess. Property giant Greenland Group broke ground on the developmentContinue Reading
The firm said that while it has enough capital for the moment, it has generally been a tough time for Indian startups trying to raise funds.
“With the funding winter here, there have been some ups and downs in the market because of largely macroeconomic factors like inflation, global economy slowing down, the Ukraine war and so on,” said its founder Prashant Bhonsle.
There are about 80,000 startups registered in India, according to government figures.
Valued at more than 3 trillion rupees (US$36 billion), the sector has become an increasingly important part of the nation’s economy.
A record number of these firms have become “unicorns” – a term used to describe startups valued at over US$1 billion – in recent years.
However, the number has slowed drastically amid the funding winter.
Research firm Hurun reported that only three companies have become unicorns in India this year, compared to 24 by this time last year.
At their peaks, the valuations of firms became overinflated and capital was being deployed into startups with unsustainable business models, according to analysts.
Investors have revised their valuations of big name Indian startups downward, including food delivery app Swiggy and education technology company Byju’s.
Major global investment firms including Tiger Global Management and Softbank Group are now doing fewer deals in India.
Industry experts said venture capital and private equity investors are being much more rigorous in their assessments and cautious about which companies they choose to invest in.
However, this may not all spell bad news for India’s economy and startup scene, they noted.
“The reset that we are experiencing right now is going to be healthy for the economy in the long term,” said advisory firm Bexley Advisors’ managing director Utkarsh Sinha.
“This is going to lead to the creation of very good and robust companies which are focused on having a line of sight towards profitability or exits.”
While there are still funds to be deployed, analysts are urging startups to be realistic about their valuations and have sustainable business models in this environment, in order to survive.
“The ones who are waking up to that reality and building that bridge to the other side will do well. Those who don’t, unfortunately, would probably not survive this winter,” said Mr Utkarsh.
Despite the correction, industry players are optimistic about brighter days ahead.
Analysts said there remains plenty of scope for companies to come up with solutions and offer services in the world’s most populous country.
Industry insiders are hopeful that India’s startup ecosystem will emerge stronger once the winter thaws.