Peak XV (formerly Sequoia India) says China remains important market | Wilnesh News

Peak XV Partners, formerly Sequoia Capital India and Southeast Asia, said China will remain an important market for investors in the long term, although other countries are now benefiting amid rising tensions with the United States. Investment outflows from China.

Shailendra Singh, managing director of Peak XV Partners, said: “In terms of procurement and other aspects, the ‘China plus one’ strategy will definitely benefit India, Southeast Asia and other places.” Peak XV Partners is one of the largest venture capital companies in Asia, with assets of 90 One hundred million U.S. dollars.

“In the long term, if you look at it from a 10-year, 20-year, 30-year perspective, if you assume that geopolitics will find some new normal, China will become a huge economy and excellent companies will be established in China. ” Singh told CNBC’s Tanveer Gill.

Last year, Sequoia split into three separate geographic units: Sequoia Capital in the U.S. and Europe, Peak XV Partners in India and Southeast Asia, and Hongshan in China. The move comes amid growing tensions between Washington and Beijing.

Peak XV has invested in more than 400 companies in the technology, software, financial services and consumer sectors.These include financial technology company Pine Labs, Singaporean online retailer Carousell, Indonesian ride-hailing giant Gojek and Indian edtech companies Byju’s and Unacademy.

China has been a technology and innovation powerhouse in Asia for many years, with many tech giants including Alibaba Group and Tencent. It has also earned the title of the world’s factory, producing low-cost consumer goods as well as most of the world’s iPhones and electric cars.

However, companies such as apple BMW and BMW have been diversifying their supply chains away from China due to geopolitical concerns. According to reports, about one-seventh (or 14%) of Apple’s iPhones are currently produced in India after China’s strict COVID-19 controls disrupted Apple’s operations in the country.

While India and Southeast Asian countries have benefited from such diversification efforts as companies set up operations elsewhere, China will remain an important market, Singh said.

“While India or Southeast Asia may benefit in the short term, all of us around the world should really think about how to work well with China in the long term,” Singh said.

David Roche, president and global strategist at Independent Strategy, said in March that India would not replace China in global trade because the Chinese model is “based on achieving global market share” while the Indian model “focuses on domestic market development” ”.

“India will continue to make progress, but it will be slow and steady progress and nothing like the Chinese model,” Roach said.