After a lackluster 2022, Japan Inc has big plans for India this year, which could give a boost to the country’s startups. Japanese giants such as Suzuki, Toshiba, Toyota and Denso have already started working with Indian startups, especially in new growth areas such as healthtech, digital infrastructure and renewable energy.
Takashi Suzuki, Principal Executive Director (South Asia) of the Japan External Trade Organization (JETRO) told the India Narrative that a significant portion of Japanese money is expected to flow into India’s startup ecosystem this year. Told.
In 2022, Toshiba Software, in partnership with Japanese venture capital fund Beyond Next Ventures (BNV), has made big plans in India with the aim of addressing social issues. Toyota Tsusho has already invested in Droom Technology, a subsidiary of the Toyota Group, India’s largest new and used car market, and Super Highway Lab, a medium- and long-distance bus app. We are developing a wide range of businesses from used car sales to recycling. Tokyo-based Sojitz Corporation has also invested in Intelligent Retail. The list is long.
“Outside of Japan, our focus is on India, which is 20% of our portfolio. At the time, the younger generations of Japan and India felt they were responsible for solving social and business problems and not leaving it to big corporations, says BNV (India). ), head of business development, Mayur Shah, told India Narrative.
Additionally, the Narendra Modi government’s push to support the country’s startup ecosystem has caught the attention of VC funds around the world. “The low capital requirements to enter the business and the ability to scale to large and early adopter markets gives Indian start-ups a clear chance to create industry standards,” said Shah. , added that BNV will not only invest but also support these companies. It is also possible to connect with Japanese companies that achieve mutual growth according to scale.
Despite the challenges of the startup ecosystem in 2022, 21 startups have become unicorns in India compared to 7 in China. However, 44 startups will become unicorns in 2021.
Indian startups have raised Rs 250 crore in 2022 despite economic uncertainty, according to Inc42. This is a 40% decrease from his Rs 420 crore raised in 2021. However, the website said capital inflows were 2.1 times higher than in 2020, a year that will see more venture capital investment outside the top three startup hubs of Bengaluru, Delhi NCR and Mumbai in 2022, leading to more startups. of startup hubs saw a 41% surge in funding.
Earlier, SoftBank Group founder Masayoshi Son expressed confidence in India’s future, saying he believed in the passion of India’s young entrepreneurs.
“India will be great..there is a bright future.I am telling the young people of India let’s make it (innovation). I stand by the passion of India’s young entrepreneurs,” he said at the Infinity Forum hosted by , adding that SoftBank has invested around $14 billion in India over the past decade.
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