Here is Why This UAE-based Investor is Bullish on Indian Startups
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
In the last few years, India has found its sweet spot among the global investor’s community and, no wonder we see a lot of people from the Silicon Valley to Singapore taking an active interest while participating in the country’s entrepreneurial ecosystem.
Recently, UAE-based Relam Investment ventured into the Indian waters with an idea to not just invest in Indian companies but also to test South Asian markets through its strategic placement in the country.
In the coming year, the investment company is looking to pump around USD 250-300m in the Indian market.
While discussing the move and how important is India as an investment destination for the company with Entrepreneur India, Sultan Ali Rashed Lootah, Chairman & Managing Director, Relam said, “Ease of doing businesses in India has improved over the period of time. UAE and the country have long trade history and we want to leverage on it. Also, considering the country’s population, we think it is the land of opportunities for investors like us as there are a lot of problems to solve here.”
The Startups Scenes
Relam’s vision is to evolve with innovation which is why the company is quite keen to work with Indian youth along with SMEs of the country and hence, it has allotted around USD 50m to invest in technology-based Indian startups.
“Technology is a leading sector in India because as a country it is catering to the whole world and not just in terms of development or outsourcing but also in the field of new technologies,” he adds.
As of now, the company is aiming to invest in blockchain-based companies, banking software, interactive services application as Realm believes this space has a lot of scopes.
“We have a clear vision for Indian real estate segment. We are aware of the growth that is happening in different areas, especially in the smart cities space,” he said while adding that, “We have studied the market and aware of the opportunities, however, having said that we also know that once you set the foot, the ball game is totally different.”
Elaborating further on the company’s investment strategy, Lootah says that the company is interested in the equity-share and by large come in as an advisor on board to the investee company.
He shares, “We don't want to control the company as our belief is entrepreneurs build the business with an ambitious idea and hence, they also know the ins and outs of their product or service but to build that they lack funds to scale it. However, if they need our expertise, we would always be available as an advisor on board.”
Additionally, the company, which is a 50:50 joint venture between UAE-Vault Investments and Vietnamese Company MIG, will evaluate the fund performance in its first year and is likely to revise the numbers if the outcome is positive.