Private Equity Firm General Atlantic Plans To Invest $ 2 Billion In India, Southeast Asia -By ASC

General Atlantic is in early-stage investment discussions with about 15 companies.


Global private equity firm General Atlantic plans to plow $ 2 billion into India and Southeast Asia over the next two years after a fall in valuations made start -ups in the region more attractive, a senior executive told Reuters.

General Atlantic is in early-stage investment talks with about 15 companies in sectors including technology, financial services, retail and consumers, Sandeep Naik, head of its business in India and Southeast Asia, said in an interview.

The market for start -ups, especially in India, is going through a tough time. After amassing a record $ 35 billion in 2021, the founders struggled to attract cash, sparking concerns over lower valuations and forcing some people to cut jobs.

After investing just $ 190 million in Indian start -ups in 2021, its lowest annual figure, General Atlantic is now ready to loosen its purse strings, Naik said in an interview at the World Economic Forum at a Swiss ski resort in Davos.

“Realism is on the rise. We are waiting for value creation to happen. We are now ready,” Naik said of General Atlantic’s plans for India and Southeast Asia, which has investments of more than $ 4.5 billion, mostly in India.

“We are very confident with India, Indonesia and Vietnam,” Naik added, declining to name any companies he was looking at.

General Atlantic’s existing high -profile Indian investments include educational technology companies like Byju, which offer online tutoring in a country where internet and smartphone usage is growing rapidly and is worth around $ 22 billion.

It has also invested in Reliance Retail, the largest retailer in India, and in Southeast Asia its portfolio includes Indonesian food and beverage retailer PT MAP Boga Adiperkasa and social entertainment platform Kumu in the Philippines.

Many tech companies around the world have suffered in recent weeks as the conflict in Ukraine and rising interest rates hurt investor sentiment. SoftBank Japan has reported a record loss of $ 26.2 billion in its investment arm of Vision Fund.

Given the difficult market environment and falling valuations, General Atlantic advises all of its portfolio companies to look for consolidation opportunities.

“Now is the best time to unite … Strong becomes stronger,” Naik said.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)


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