Does Indian Startup Ecosystem get affected by Foxconn’s slow down in Investment?

About Foxconn’s Plans for India

Till now, Foxconn has invested in just 4 startups in India. It had plans of investing $1 billion in the Indian startup ecosystem as well as developing 10-12 factories and data centers in India by the year 2020. Last year, when the Chairman of electronics contract manufacturer Foxconn Technology Terry Gou visited India, he proudly announced creating a million job opportunities across five States in the country. Not many know, Foxconn has poured money in Snapdeal, parcel locker network company QikPod, home automation startup eGlu and Internet Venture MoMagic.

GreenDust’s Untold Story

Moreover, Foxconn had also declared that it was in the last stages of investing in New Delhi-based refurbished goods seller GreenDust. The investment estimated was of $65-70 million, making it the second largest investment deal for the Taiwanese manufacturer in an Indian startup.  However, it has been 10 months and the deal hasn’t been closed, reports The Economic Times. No information regarding the deal is out from GreenDust.

Foxconn’s Slow Down

Evaluating, Foxconn’s current Indian investment profile, it has only invested in four startups, which is far from its earlier intentions. As per the news, in June last year, over a dozen Indian startups met Wen-Hsin Tong, Chairman and Director of Investments at FIH Mobile Ltd, the investment arm of Foxconn. However, the company hasn’t done much about it. The assumed reason could be Foxconn’s takeover of Japanese electronics manufacturer Sharp for the sudden change in the plans and strategies.

Takeaways:

• Foxconn had plans of investing $1 billion in the Indian startup ecosystem as well as developing 10-12 factories and data centers in India by the year 2020.
• Evaluating, Foxconn’s current Indian investment profile, it has only invested in four startups, which is far from its earlier intentions.
• The assumed reason could be Foxconn’s takeover of Japanese electronics manufacturer Sharp for the sudden change in the plans and strategies.