Paytm founder Vijay Shekhar Sharma hails ban on 59 Chinese apps; faces backlash
BusinessToday.In June 30, 2020
Paytm founder Vijay Shekhar Sharma has lauded the government's decision to ban 59 Chinese apps. Sharma called it a "bold step" and a step towards the "Atmanirbhar App ecosystem". However, Sharma received a lot of flak for his tweet as netizens pointed out about his Chinese investors.
"Bold step in the national interest. A step towards Atmanirbhar App ecosystem. Time for the best Indian entrepreneurs to come forward and build the best by Indians, for Indians!" he said.
However, despite his show of support, Sharma's company Paytm is facing netizens' ire on Twitter. There's a strong chorus on Twitter to ban Paytm as Ant Financial, the fintech arm of Alibaba Group, is one of their biggest investors. Ant Financial has pumped millions of dollars in Paytm. One97 Communications Ltd, which operates Paytm, raised $1 billion from new and existing investors, including Japan's SoftBank Group and China's Ant Financial in November 2019.
China has emerged as one of the biggest financiers for start-ups in India. Approximately two-thirds of Indian start-ups have at least one Chinese VC investor. For example, BYJU's, Snapdeal, Khatabook, MyGate, Zomato, Swiggy, Udaan, Flipkart, BigBasket, Lenskart are among the several Indian prominent firms that have received investment from China.
Yesterday, the government banned Chinese applications like TikTok, Shareit, Helo, and 56 others. The government said it has taken this action to safeguard public safety and to protect the sovereignty and integrity of India.
This development has come in the wake of heightened tensions between India and China along the Line of Actual Control (LAC) after the Galwan Valley clash in which 20 Indian soldiers were killed on June 15.