“We intend to deploy significant capital in India over the next few years…”
That’s a quote from Masayoshi Son. He’s CEO of Japanese Internet firm SoftBank Corp. He’s famous for his $20 million startup investment in Chinese e-commerce giant Alibaba—now the world’s largest company. SoftBank’s investment is now worth over $25 billion. And now Son says he is bullish on India’s startup activity.
He’s not the only one. The website Yourstory reports India has come alive as a hotbed of startup activity:
India’s fastest growing e-commerce startup, Snapdeal, raised $627 million last October. Its valuation now stands over $2 billion.
India’s Uber-style alternative taxi service, Ola, raised $210 million. Its value has risen to over $1 billion in under three years.
In December, India’s largest online retailer, Flipkart, raised another $700 million. It now boasts an over $11 billion valuation.
And last week, India’s online restaurant guide, Zomato, bought U.S.-based startup Urbanspoon for over $50 million. The deal was the largest Indian purchase of a U.S.-based Internet company in history.
According to the author, it’s a great time to invest in Indian startups. He recommends U.S. investors look to AngelList as a way to get in on the action.
Now, India’s startup scene may be booming… but we’d never recommend you log onto a website and commit cash to something “murky”… happening half a world away. Mark’s No. 1 investment rule is never invest in something you don’t understand. India’s spectacular growth story may make some investors salivate… but a good story is often the only thing they’ll wind up with in the end.
Bottom line: Startup businesses can be some of the most lucrative investments out there… but only if you know what you’re doing. For example, Deal #3 in the DealBook—our new venture capital opportunity list for Infinity subscribers—boasts a potential 700% gain in under four years. The company uses disruptive technology that is transforming an entire industry.