General Atlantic will invest $2 billion in India and Southeast Asia

According to Reuters, global private equity company General Atlantic aims to invest $2 billion in India and Southeast Asia over the next two years after lowering valuations made the region’s startups more appealing.

Sandeep Naik, the president of General Atlantic’s operations in India and Southeast Asia, said that the company is in early-stage investment conversations with roughly 15 firms in areas such as technology, financial services, retail, and consumer.

The startup market, particularly in India, is experiencing difficulties. Founders are struggling to get financing after raising a record $35 billion in 2021, generating worries of falling valuations and driving some to slash employment.

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General Atlantic is ready to ease its purse restraints after spending just $190 million on Indian companies in 2021, its lowest annual total ever, Naik said in an interview at the World Economic Forum in Davos, Switzerland.

“Realization is dawning. We were anticipating the generation of value. We’re all set now “General Atlantic’s ambitions for India and Southeast Asia, according to Naik, total more than $4.5 billion in investments, the majority of which are in India.

“We are quite positive about India, Indonesia, and Vietnam,” Naik said, refusing to identify any of the firms the firm is considering.

Education technology businesses like Byju’s, which provides online instruction in a nation where internet and smartphone usage is rising and is valued at roughly $22 billion, are among General Atlantic’s existing high-profile Indian investments.

It has also invested in Reliance Retail, India’s biggest retailer, PT MAP Boga Adiperkasa, an Indonesian food and beverage store, and Kumu, a Philippine social entertainment platform.

Many internet businesses have suffered in recent weeks due to the crisis in Ukraine and increasing interest rates. SoftBank’s Vision Fund investment arm has posted a record loss of $26.2 billion.

Due to the challenging market conditions and decreasing values, General Atlantic encourages all of its portfolio firms to consider consolidation options.

“Now is the greatest moment to consolidate,” Naik said.