Netprice .com, one of Japan's largest investor firms and consumer internet-focused incubators, is scouting for opportunities in India, highlighting the increasing interest of Japanese investors in the country's early-stage technology ventures.
The announcement comes barely a month after the Japanese investor closed its second deal in India, when it jointly invested about $5.5 million (Rs 34.2 crore) in Mumbai-based mobile payments solutions provider CitrusPay - along with online payments company econtext Asia - through its wholly-owned , Singapore-based subsidiary Beenos Asia.
The announcement comes barely a month after the Japanese investor closed its second deal in India, when it jointly invested about $5.5 million (Rs 34.2 crore) in Mumbai-based mobile payments solutions provider CitrusPay - along with online payments company econtext Asia - through its wholly-owned , Singapore-based subsidiary Beenos Asia.
It has also invested Gurgaon-based e-commerce venture ShopClues.
"We are looking at investing in about two to three ventures in India in 2014, given the growing population of the country, along with increased internet penetration, which we feel are critical factors for the growth of e-commerce ventures," said Teruhide Sato, president and CEO of Netprice.
Over the past five years, a number of Japanese investors , such as telecom and internet conglomerate SoftBank and venture capital firm SBI Holdings, have set up shop in the country, and have made marquee investments in a number of early-stage ventures.
"The Indian internet market is very promising, and a lot of it is coming together now, which is playing a big role in a number of domestic ventures being seen as attractive assets for global investors," said Alok Mittal, managing partner, Canaan Partners.
In 2011, telecom major SoftBank invested $200 million (Rs 1,242.4 crore) in mobile advertising venture InMobi, which, at the time, was the largest venture capital round raised by a startup globally.
The telecom major has also set up a joint venture with Bharti Airtel and Yahoo! Japan - Bharti SoftBank - that focuses on the mobile internet space.
Separately, SBI Holdings, which manages assets exceeding $3 billion (Rs 18,636 crore), also invested $3 million (Rs 18.6 crore) in education services company LIQVID e-Learning in 2012.
Other strategic investments include engineering and electronics conglomerate Hitachi's buyout of Sequoia Capital-backed payment solutions firm Prizm Payments for an undisclosed amount in November last year.
"Japan's been slower than most in capturing opportunities in India. They've seen what the Koreans have been able to do," said Mohan Kumar, partner at Norwest Venture Partners.
According to Sato, Netprice will look at opportunities that cater to the growing consumer demands in India, which he feels, is a market comparable to its bigger peer China.
"We are seeing innovation here, and want to bring in the expertise that we're seeing in Tokyo," Sato said, adding that the company will look to invest in ventures, operating across web and mobile platforms.
Average investment ticket size will range between $5,00,000 (Rs 3.1 crore) and $4 million (Rs 24.9 crore) per transaction for Netprice.
Japan, the world's third-largest economy, has been gradually emerging out of a protracted economic slump, brought about by the global financial crisis and then exacerbated by the Fukushima Daiichi nuclear disaster in 2011.
"The business environment in Japan has improved a fair bit over the last 18 to 24 months, and India could reap the rewards," pointed out Mittal.
The changing geo-political situation between Japan and China, a country in which the former has invested heavily - has also played a role in the decision of Japanese investors to look further east to India, as they look to diversify their portfolio, and de-risk their exposure to China.
"It's been a factor. But Japanese and Indians can be considered natural allies as well, given that Japan's strength has always been consumer electronics, and India, through its massive domestic consumer demand, offers a market, as well as great tech ventures," said NVP's Kumar said.
"We are looking at investing in about two to three ventures in India in 2014, given the growing population of the country, along with increased internet penetration, which we feel are critical factors for the growth of e-commerce ventures," said Teruhide Sato, president and CEO of Netprice.
Over the past five years, a number of Japanese investors , such as telecom and internet conglomerate SoftBank and venture capital firm SBI Holdings, have set up shop in the country, and have made marquee investments in a number of early-stage ventures.
"The Indian internet market is very promising, and a lot of it is coming together now, which is playing a big role in a number of domestic ventures being seen as attractive assets for global investors," said Alok Mittal, managing partner, Canaan Partners.
In 2011, telecom major SoftBank invested $200 million (Rs 1,242.4 crore) in mobile advertising venture InMobi, which, at the time, was the largest venture capital round raised by a startup globally.
The telecom major has also set up a joint venture with Bharti Airtel and Yahoo! Japan - Bharti SoftBank - that focuses on the mobile internet space.
Separately, SBI Holdings, which manages assets exceeding $3 billion (Rs 18,636 crore), also invested $3 million (Rs 18.6 crore) in education services company LIQVID e-Learning in 2012.
Other strategic investments include engineering and electronics conglomerate Hitachi's buyout of Sequoia Capital-backed payment solutions firm Prizm Payments for an undisclosed amount in November last year.
"Japan's been slower than most in capturing opportunities in India. They've seen what the Koreans have been able to do," said Mohan Kumar, partner at Norwest Venture Partners.
According to Sato, Netprice will look at opportunities that cater to the growing consumer demands in India, which he feels, is a market comparable to its bigger peer China.
"We are seeing innovation here, and want to bring in the expertise that we're seeing in Tokyo," Sato said, adding that the company will look to invest in ventures, operating across web and mobile platforms.
Average investment ticket size will range between $5,00,000 (Rs 3.1 crore) and $4 million (Rs 24.9 crore) per transaction for Netprice.
Japan, the world's third-largest economy, has been gradually emerging out of a protracted economic slump, brought about by the global financial crisis and then exacerbated by the Fukushima Daiichi nuclear disaster in 2011.
"The business environment in Japan has improved a fair bit over the last 18 to 24 months, and India could reap the rewards," pointed out Mittal.
The changing geo-political situation between Japan and China, a country in which the former has invested heavily - has also played a role in the decision of Japanese investors to look further east to India, as they look to diversify their portfolio, and de-risk their exposure to China.
"It's been a factor. But Japanese and Indians can be considered natural allies as well, given that Japan's strength has always been consumer electronics, and India, through its massive domestic consumer demand, offers a market, as well as great tech ventures," said NVP's Kumar said.
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