In the recent years, many Indian startups have raised funds from various foreign companies. For example Flipkart, Snapdeal to name a few. Why do foreign companies invest a huge amount of money in Indian startups ? Is it a route to indirect Foreign Investment? While startups are going to be the future of India, is this trend good to the nation ? Will these foreign funded startups do good to our country in the future ?
When a startup raises such a huge amount of money from a foreign company, a major share of the startup goes to a foreign company even before the startup files for an IPO.
Recently, Ticketnew, a Chennai based movie ticket booking company raised funds from a Chinese Firm AliBaba. Is there no Indian company ready to provide funds to such a potential startup like Ticketnew ? What about the Startup India Funds? China does not even allow Facebook in its own country. So whey are allowing Chinese companies to invest in our startups?
There should be a regulation from the government that the startups should raise funds only from Indian companies or the government itself. Isn't the Startup India program for the nation's own growth ? Or to help foreign companies enter trade in India ?