Several Japan-based funds are looking at Indian startups in 2023 with Suzuki, Toshiba, Toyota and Denso just a few of the big companies who could invest. India’s growing number of unicorns as well as a younger population are among the reasons behind this move.
Takashi Suzuki, Chief Director General (South Asia), Japan External Trade Organisation (JETRO) told India Narrative that he expects several Japan-based funds to make a splash in the Indian startup ecosystem over the coming months.
One of the largest current players is Toshiba Software who, in conjunction with Japanese venture capital fund Beyond Next Ventures (BNV), has invested US$22.6 million in Indian startups since first launching.
“Our main focus outside Japan is on India which consists of 20 percent of our portfolio. We see the current situation in India as very similar to Japan’s early-stage high economic growth. Young demographics in Japan then and in India now feel that the onus is on them to solve social and business problems and not leave it to large corporations,” Mayur Shah, Head – Business Development, BNV (India), was quoted as saying by the website.
SoftBank Group was among the first Japanese firms to be active in this space and have poured approximately US$14 billion into India over the past ten years. In 2021, the firm restated its commitment to funding the country’s young entrepreneurs.
“India will be great. There’s a bright future. I tell young people in India let’s make it innovation happen. I would support,” SoftBank Group Founder Masayoshi Son said in 2021. “I believe in the future of India. I believe in the passion of young entrepreneurs in India.”
Last year saw 21 startups in India reach unicorn status which was triple the number of China. That was down from 2021 when 44 startups became unicorns.
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