The pressure has shown signs of easing in recent months. In June, Ant received clearance to relaunch its IPO plans, and earlier this week Didi Global was acquitted of a $1.2 billion fine, marking the end of an investigation that forced him to delist from the New York Stock Exchange within a year of his debut. .
Here are 10 numbers that reflect the extent of the damage done to China’s tech sector over the past 20 months.
40
The percentage of large Chinese companies that are technology companies.
$1.5 trillion
The estimated value of the crackdown wiped out China’s tech industry at one point. That’s more than half of India’s total GDP in 2020 ($2.62 trillion).
$2.8 billion
The record fine imposed on Alibaba for anti-competitive behavior. One of the harshest punishments, it drew rebukes from senior party officials such as Vice Premier Liu He, China’s top economic policymaker, who called on regulators to be “standardised, transparent and predictable”.
95
The percentage of software publishers among those who are penalized by repression. Only 5% were primarily hardware businesses.
14,000
The number of gaming-related businesses that were forced to close after China abruptly stopped licensing video games.
$100 billion
The estimated size of China’s IT industry before it was all but wiped out by the crackdown.
25
The number of online education companies that closed in 2021 following the crackdown on private education, according to Chinese research firm 100EC.
$54.8 billion
The amount investors outside of China invested in Chinese tech companies in 955 deals in 2021 despite the crackdown, according to the PitchBook Greater China Venture Report.
$130 billion
The total amount Chinese tech companies raised in 2021, including domestic venture capital funding. This is 50% more than in 2020.
76.7
The percentage decline in Chinese internet sector investment and financing in the first quarter of 2022 compared to the same period in 2021, according to a report by the Chinese Academy of Information and Communication Technology. It was also 42.6% lower than the previous quarter as investors finally started to flee.
Top stories by our journalists
Technical policy
Indian tech companies meet lawmakers: Senior executives, startup founders and CEOs of Indian internet companies including Flipkart, Paytm, Oyo Hotels & Homes, Ola, Zomato, Swiggy, Makemytrip and others met with a high-level parliamentary panel led by former BJP Minister of State for Finance Jayant Sinha on Thursday to discuss “anti-competitive practices by big tech companies.”
Global electronics and hardware manufacturers are looking for delayed PLI payments: Several global electronics and hardware manufacturers are calling on the union government to release late payments owed to them under the country’s ambitious Production Linked Incentive (PLI) programssources told us.
Fintech developments
The number of prepaid cards issued by fintech companies plummets in July: Fintech companies such as Slice, Uni and LazyPay have issued less than 100,000 prepaid cards so far this month after the The Reserve Bank of India banned them to load lines of credit onto wallets and other prepaid payment instruments (PPIs) in June, several executives told us.
Slice changes business model after RBI circular: Card-based fintech startup Slice will now offer real-time term loans to customers for each transaction, depending on the user’s profile, the nature of the transaction and the merchant.
Slice pending fundraiser as RBI rating triggers uncertainty: fintech Slice’s ongoing fundraiser has come to a halt after the Reserve Bank of India’s circular last month banned prepaid payment instruments (PPIs) from loading lines of credit, sources told us.
Startup news
Global game company investors ask FM for status quo on GST: More than a dozen global venture capital investors in Indian gaming startups haveurged the government to retain the current Goods and Services Tax (GST) levied based on gross gaming revenue (GGR) rather than total deposits. It comes amid widespread concerns that the GST Board – its top decision-making body – is considering imposing a tax on the latter.
India’s startup ecosystem has created 7.68 lakh jobs over the past six years: India has registered about 72,983 startups in the last six years, and these companies have generated about 7.86 lakh jobs over this period, the government informed parliament on Wednesday.
Startups face a deluge of probing questions from job seekers: How long will your money last? Why do you think your business model will work? Can you afford to go ahead with your buyout plans? These are some of the questions startup hiring managers face from potential employees.
Cryptoverse
Crypto Firms Plan New Industry Body As BACC Shuts Down: Crypto exchanges and blockchain companies are trying to cobble together a independent industry body after the Internet and Mobile Association of India (IAMAI) dismantled the Blockchain and Crypto Assets Council (BACC) last week.
RBI wants crypto ban, government needs global support for regulation, FM says: While the Reserve Bank of India has made it clear that it wants a complete ban on crypto assets, the Indian the government needs global collaboration whether such a ban or regulation should be enforced, Finance Minister Nirmala Sitharaman said on Monday.
ETtech eCommerce Index
We have launched three indices – ET Ecommerce, ET Ecommerce Profitable and ET Ecommerce Non-Profitable – to track the performance of recently listed technology companies. Here’s how they’ve fared so far.
computer corner
IT companies can streamline real estate in big cities as small towns take center stage: Some Indian and global IT companies are looking to rationalize their real estate in large cities although others are slowing down or completely stopping their expansion into the metros. They are looking to aggressively expand into Tier II and Tier III cities to exploit workers who have returned to their hometowns during the pandemic, company executives and analysts told us.
Wipro’s pipeline is growing across all industries, says the CEO: Driven by a record deal portfolio despite macroeconomic headwinds, Wipro forecast revenue growth of 3% to 5% – higher than estimates – in the current quarter. Thierry Delaporte, managing director of India’s fourth-largest software exporter, told us in an interview that operating margins will climb to 17-17.5% in the coming quarters thanks to investments in new products and increased operational efficiency. .
The IT industry is recession proof, says Wipro Executive Chairman Rishad Premji: The IT sector is “recession-proof”: The The IT sector is “recession-proof” as customers will spend either on business transformation or take-out transactions, said Wipro Executive Chairman Rishad Premji, adding that customers have not stopped making transaction decisions and spending amid fears of inflation and recession.
TCS is building eight major campuses: Tata Consultancy Services is in the process of creating eight new large office spaces each capable of accommodating more than 10,000 employees. Some of these centers are springing up in non-metropolitan cities, TCS Chief Financial Officer Samir Seksaria told ET.
Ecommerce News
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Blinkit to integrate with Zomato Hyperpure in fresh pivot: Blinkit is closing warehouses again, this time to integrate its operations with food delivery major Zomato, which is in the process of acquiring the Gurgaon-based fast-trading startup.
SoftBank and Sequoia want portfolio companies to join ONDC: Card-based fintech startup Slice will now offer real-time term loans to customers for each transaction, depending on the user’s profile, the nature of the transaction and the merchant.
Summary of ETtech offers
■ Shiprocket, a logistics aggregator backed by Temasek and Zomato, said it has acquired Arvind Retail’s omnichannel technology business, Omuni in a cash and share deal of Rs 200 crore. This marks another attempt by Shiprocket to double down on its direct-to-consumer shipping business. Last month, it announced the acquisition of Pickrr in a $200 million deal.
■ Financial infrastructure provider M2P Fintech achieved its third acquisition this year in identity verification service provider Syntizen, as it seeks to bolster its offerings to fintechs and other financial institutions. The company acquired Bengaluru-based cloud lending platform Finflux earlier this month.
Venture capital funds
LetsVenture CEO Launches Micro VC: Shanti Mohan, co-founder and managing director of startup investment firm LetsVenture, said launched a new micro-venture capital (VC) company Propell, with an investment corpus of Rs 50 crore. Propelll, founded last year, will focus on investments in early-stage startups in e-commerce, software services, D2C brands and technology-enablement platforms.
B Capital raises $250m for Ascent seed fund: Global technology-focused investment firm B Capital said it has raised $250 million as part of its first Ascent fund dedicated to the starter vehicle.