A senior executive at global private equity company General Atlantic told Reuters that the firm plans to invest $2 billion in India and Southeast Asia over the next two years as lowering valuations make the region's startups more attractive.
What happened: According to Sandeep Naik, General Atlantic's head of business in India and Southeast Asia, the company is in early-stage investment talks with about 15 companies in sectors like technology, financial services, retail, and consumer.
General Atlantic is ready to ease its purse strings after investing just $190 million in Indian startups in 2021, its lowest annual figure ever, Naik said in an interview at the World Economic Forum in the Swiss ski town of Davos.
Why it's Important: "The realism is setting in. We were waiting for the value creation to happen. We are now ready," Naik said of General Atlantic's plans for India and Southeast Asia, where it has investments of more than $4.5 billion, mainly in India.
"We are very bullish on India, Indonesia, and Vietnam," Naik added, omitting to name any companies under consideration.
Given the challenging market conditions and decreasing values, General Atlantic advises its portfolio companies to consider consolidation opportunities.
"Now is the best time to consolidate... Strong gets stronger," Naik explained.
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