China’s tech investors turn from India to Indonesia

China’s tech investors turn from India to Indonesia

Sharp spike in investment in south-east Asia’s largest economy after New Delhi closes its doors

Chinese venture capital investors are shifting their focus to Indonesia after India closed its doors to them, helping to create a 55 per cent surge in tech investment in south-east Asia’s biggest economy in the first half of 2020.

Shunwei Capital, launched by the founders of mobile phone maker Xiaomi, and BAce Capital, which is backed by the fintech giant Ant Group, both said they were pivoting from India to Indonesia.

Tuck Lye Koh, co-founder of Shunwei, which runs funds worth about $3bn, said it is planning to seal more deals in Indonesia, and that it is “not making new investments in India for now” and would focus instead on managing its existing portfolio companies.

One person familiar with BAce Capital’s plans also confirmed the switch, but added that the firm would be less active in Indonesia, since the market is less developed. Another leading Chinese venture capitalist added that Indonesia was the only market in south-east Asia that warranted serious attention now that India is shut.