China's ICBC sets up $200mn-fund for investing in Indian MSMEs
The Indian unit of China's largest bank, the Industrial and Commercial Bank of China (ICBC), has set up $200mn fund for investing in Indian Micro, Small and Medium Enterprises (MSMEs). Zheng Bin, CEO of ICBC India, yesterday gave an overview of Indian start-up ecosystem and how to invest in them, at the 2nd 'Start-up India' Investment Seminar organized by the Indian Embassy in Beijing.
More than 350 Chinese, mostly representing Chinese Venture Capital (VC) funds, angel investors participated in a day-long pitching session and seminar organized by the Indian Embassy in partnership with the Start-up India Association (SIA) and Venture Gurukool, founded by Mahendra Swarup. ICBC, a top state-run bank, which is China's largest lender by market value, had opened its branch in Mumbai in 2011.
The event, which was expected to fetch good investments for the Indian firms, also saw the participation of 42 Indian entrepreneurs representing 20 Indian start-ups. Four out of the 12 Indian firms, which took part in the first start-up India investment seminar held in Beijing last year, got funding from the Chinese VCs to the tune of $15 million, a press release said.
In the current round, 7-8 start-ups of 20 participants, may get a commitment to the tune of $30 million, the release said. The event was planned to expose the Chinese VCs and investors to the promising Indian start-ups on one hand and help Indian start-ups to reach out to the huge Chinese investors' community for receiving investment for the growth of their companies.
Addressing the event, Acqino Vimal, Deputy Chief of Mission, Indian Embassy, said Chinese investors should take part in the development process of India's growth story through investing in Indian start-ups. He said India's young demography, rapid economic growth, and fast urbanization work as a hotbed for growth of Indian entrepreneurs, as well as provide them an opportunity for offering unique, affordable solutions for challenges.