Japanese consultancy launches tech venture fund for Indian startups

09 January 2018 Consultancy.in 2 min. read

In a bid to capitalise on the rapidly expanding digital arena in India, Japanese firm Dream Incubator has established a fund of 5 billion yen (Rs. 280 crore) for investments in the country. The fund will specifically focus on startups that operate in the smart-phone entertainment domain.

India is riding a wave of digitisation. The majority of the substantial population, which hitherto operated outside of the digital domain, is now rapidly gaining access. Management consultancy Boston Consulting Group (BCG) recently revealed that the country is set to have 850 million online users by 2025.

A market that size is bound to attract major investment, signs of which are already abundant. Investments in digital-based services, including media and entertainment, as well as the advertising sector, are expected to grow by hundreds of billions of dollars over the next decade.

Well-entrenched in the digital domain is the world of smart-phone entertainment. India has added over 100 million 4G connections over the last seven months. This is precisely the market that Japanese consulting firm Dream Incubator is hoping to capitalise on with its new 5 billion yen fund in India.

Japanese consultacy launches tech venture fund for Indian startups

The fund is specifically aimed at investing in startups that develop smart-phone entertainment features, including games, music applications, and video streaming. The fund, which already has ten prospects on its shortlist of investments, is planned with an upper limit of ten years. Japanese gaming firm Akatsuki has already agreed to invest in the fund.

In addition to the fund, Dream Incubator appears to be planning for an overall increase in involvement in the Indian market. The firm, which simultaneously operates in the fields of strategy consultancy, venture capitalism, and expansion services, has already made substantial investments in 99Games Online and Baldor Technologies: two digital-based startups in India.

In 2016, Dream Incubator established an India Liaison Office in Mumbai, telegraphing its plans for expansion into the country. The extra dimension offered by the Indian arm will give the firm an edge over its digital competitors in Japan.