Any restrictions on Chinese smartphone cos next thing to watch out for: Elara Capital

This will also have some kind of an impact on advertising if things become more stringent and stricter, says , vice-president.

Do you expect any kind of backlash or implications on companies here that have Chinese investors? Are you already seeing that pressure given the government’s other mandates with regards to investment roots into India? Is this causing some amount of uncertainty when it comes to the current environment?

Yes, definitely. If you look at the numbers, these Chinese apps were very large in terms of size and scale. So just three apps — Tiktok, Club Factory and UC browser — have millions of active users every month. So the size is very small and the Chinese companies, be it your , companies in the startup space or the app space have a big presence in the India market today which cannot be ignored. Now how things unfold in the smartphone market is something which we will have to wait and watch out for because almost 75% to 80% of the smartphone market of India is dominated by Chinese players led by , , and many others.

So I think that is something which we need to explore and this will also have some kind of an impact on advertising if things become more stringent and stricter as the companies which have direct exposure to China or probably the investee companies from China and the amount of advertising which they do with India today is close to about Rs 3,000 crore, which is almost 4% to 5% of the overall ad spends. So if at all there are some kind of restrictions imposed in terms of Chinese advertising or Chinese companies advertising in India, it could have a repercussion on that as well.

On the app front, we are well prepared. So given the multiple apps which are being banned, I have been going through the list and we already have multiple alternate apps available today. Out of these alternative apps, almost 40-50% are Indian apps. So it is definitely a good time for these Indian apps.