Discussions are on regarding the Indian business sector capitalizing on the ban of 59 Chinese apps. The Indian tech community hopes that the Chinese app ban may pave the way for a ‘Digital Swadeshi’ revolution. With Indians’ favorite apps like TikTok, Helo and WeChat being banned, many Indian applications are in the queue to fill the void. Can the Indian tech world turn the million-dollar loss of those Chinese companies into profit? Meanwhile, there are reports that Chinese VCs and investors with small investments in Indian startups and companies are preparing for a quick exit. Discussions are going on with portfolio finders, co-investors and banks for the same. A Chinese high net worth individual who invested in four technology companies in the past four months says he is not thinking about new investments and is looking for a quick exit from his current investments.
What remains to be seen is how Indian investors and founders are going to utilize this situation as the centre put a lot of thought into banning Chinese apps, revising the FDI policy and restricting FDI from China. Already, Chinese investment in India’s growing enterprises and technology start-ups is huge. The government’s new efforts will help the country navigate domestic technology companies and startups in favor of the nation.
Over the past two years, Chinese companies such as TikTok, Likee, Club Factory and Shein have grown deep in India’s rich digital sector. Our startups had to encounter great competition for the creation and market access to similar apps. Hence, the current ban provides a unique opportunity for Indian technology entrepreneurs to create and market innovative internet products. For example, Chinese apps such as Clash of Kings and Mobile Legends were the biggest players in the Indian mobile game industry, which is valued at $ 400 million. Their ban leaves a huge market for Indian gaming companies. It is the same in other sectors, too. The question remains is how many Indian startups can use this situation as a fertile ground to grow?
