India attracts businesses in network interconnections, gaming, LED displays & EVs

No matter what goes on in our lives, business ties will proliferate across borders and geographies. India has been attracting foreign businesses with its massive market in network interconnections, gaming, LED displays and Electric Vehicles.

A report by venture platform and accelerator Fibonacci X, shows that India is poised to grow in the range of 6-10% over the next few years, barring any black swan event. This will help attract higher investments across sectors. The services sector is likely to continue to drive strong economic growth in the country.

Going by economic growth trends, India is poised to be a global hotspot for economic growth. India is not insulated from world risks, but can overcome them faster. We are expecting a growth fuelled future for Bharat

Kulmani Rana, Founder and CEO, Fibonacci X

“Going by economic growth trends, India is poised to be a global hotspot for economic growth. India is not insulated from world risks, but can overcome them faster. We are expecting a growth fuelled future for Bharat,” Kulmani Rana, Founder and CEO, Fibonacci X, said.

Though manufacturing growth has remained stagnant and future growth hinges on the output of new policy initiatives, the report indicates a huge uptick in manufacturing projects in 5-7 years. Many projects under the PLI scheme are expected to start giving returns in the coming 5 years or so.

Overall, the ease of doing business is expected to consistently improve because of active initiatives and competition faced by other countries. Several offshore registered companies are expected to return to India.

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Interestingly, India is becoming the preferred location for R&D and capability hubs. The number of R&D professionals in the industry have increased manifold. There are about 1.6 million professionals employed in captive centres and over 1,580 global capability centres in India. 

The country also has a robust digital payments system and digital payment users are expected to double by 2030. On the banks and financial institutions front, bank health has improved, but asset reconstruction mechanisms are yet to become efficient. The Gross NPA ratio has declined significantly (more than 5%) over the past 5 years, but it is still higher than major economies (with the exception of Russia).

Fintech services business hub in the UAE

Bajaj Finserv Direct Ltd., a subsidiary of Bajaj Finserv Ltd, launched its Technology Services business hub in the UAE, at the Dubai International Financial Centre (DIFC), as part of its foray into the Middle East market.

Sanjiv Bajaj, Chairman and Managing Director, Bajaj Finserv Ltd. said, “A digital revolution is unfolding worldwide with AI and emerging technologies reshaping industries, businesses, and more so, lives. The UAE, with its new digital agenda, is the natural choice for our global debut.”

The foray into UAE’s tech-savvy market is a significant milestone in the growth trajectory of Bajaj Technology Services, which will seek to develop solutions at scale for major sectors including financial services, retail & e-commerce, and government enterprises.

German network interconnection expands in India

German operator of carrier- and data-center-neutral Internet Exchanges, DE-CIX, has expanded its capacities in India, driven by significant demand for network interconnection and in turn enabling further strong growth in the country’s digital economy. At DE-CIX Mumbai, the largest carrier and data center-neutral Internet Exchange (IX) on the Indian subcontinent, the operator has increased the density of 100 GE ports and upgraded the IX with 400 Gigabit Ethernet (GE) access technology. Moreover, the overall network capacity at DE-CIX Mumbai has increased dramatically to an impressive 800 Gigabit.

Facilitated by services and solutions provided by DE-CIX India at its five Internet Exchanges across the country, this capacity will provide an essential foundation for further digitalisation of society and the economy in India, considered one of the fastest-growing and most valuable digital economies in the world.

DE-CIX has already migrated its customers in Mumbai to the new platform. “The upgrade is an important step for DE-CIX and for network operators across the country,” says Sudhir Kunder, Chief Business Officer at DE-CIX India. “We are not only enhancing the quality of networks already connected to us but also preparing for forthcoming developments in this dynamic market. India requires the best connectivity quality to meet users’ demands for high-end digital applications and content. DE-CIX India supports networks to improve their quality of service and ensure the performance and security of data flowing to and from end users.”

Today, DE-CIX India’s carrier and data center neutral IX ecosystem counts more than 600 network connections across five metro markets. Data throughput at DE-CIX Mumbai grew by 32% in 2023, reaching 1.5 Tbit/s at peak times. This underlines the importance of the region’s flagship IX, now in its sixth year of operation. The DE-CIX India platform is available at 20 data centers in Mumbai, Delhi, Chennai, Kolkata, and Hyderabad, offering direct interconnection (“peering”), direct connectivity to major cloud providers, and other interconnection services.

Singapore based gaming firm expanding in India

Ampverse DMI, a joint venture between Ampverse Group,(“Ampverse”) a gaming and entertainment ecosystem with bases across Southeast Asia & India, and DMI Group (“DMI”), a leading Indian financial services platform, are expanding in India.

Ampverse DMI as part of their 2024 plans will launch a comprehensive suite of solutions, including marketing solutions for brands and game publishers, and commerce products, which will focus on merchandise and e-commerce enabled solutions for gaming communities for the first time in India as part of its 360 degree bouquet services.

Charlie Baillie, Chief Executive Officer of Ampverse Group, states, “Our experience with global brands like Disney, EA, and McDonald’s gives us a unique view and the ability to innovate in the Indian market. We are excited to bring our knowledge to India and build something special.”

Ampverse DMI brings together the unique strengths of its partners – global entertainment and gaming experience coupled with a deep understanding of the Indian consumer and a capacity to drive on-ground scale. This, along with the combined trust of global leading brands, positions the Company strategically to become a market leader in the Indian gaming industry.

Chinese LED Display Co. Doubling Workforce in India

AET Displays, a Chinese industry expert in fine-pitch LED displays, is starting an expansion drive aimed at doubling its workforce in India by the end of 2025. The company plans to hire approximately 100-200 new employees, augmenting its current workforce of 100+ in India. These new hires will be distributed across various departments including Sales, Marketing, Technical Support, Production, Warehouse & Supply Chain, R&D, and a newly established Customer Success department.

The hiring initiative will primarily focus on major urban centres such as Mumbai, Delhi, Chennai, and Bangalore, with new employees working from different offices in these cities. The hiring and onboarding process is set to begin in the next quarter, aiming for a smooth integration of new talent into AET’s operations.

Su Piow Ko, CEO at AET India, emphasized, “India is a pivotal market for us at AET Displays, given its immense potential to accommodate our diverse product portfolio. Aligning with this vision, we are initiating this hiring initiative, confident that it will bolster our growth trajectory in the years to come.”

AET’s vision of fostering employment opportunities in India is supported by its extensive portfolio of over 50 products, a robust network of more than 80 partners and distributors, an assembly plant, three offices, three customer experience centres, and five service centres across the country.

Second tranche investment from Japan in EV

EKA (Pinnacle Mobility Solutions) announces Mitsui & Co., Ltd. (“Mitsui”), a global trading and investment company has executed a second tranche investment as a part of the initially announced phased investment, further solidifying their commitment to the rapidly growing electric vehicle (EV) company. This strategic infusion of capital will be directed towards capital expenditures (Capex) and working capital, supporting EKA Mobility’s continued expansion and innovation in the EV sector. This tranche also establishes an attractive valuation benchmark for the company.

In December 2023, EKA, Mitsui & VDL Groep, a Dutch technology and manufacturing company, entered a long-term partnership, that included joint investments of USD 100 million (~ INR 850 crores) in phases, equity, and technology cooperation to create a leading global OEM in India.

Under the cooperation, EKA Mobility will receive significant and strategic investments from Mitsui, and technological support & equity partnership from VDL Groep. As part of this partnership, VDL Bus & Coach, a subsidiary of VDL Groep and Europe’s frontrunner in electric buses & coaches will support EKA Mobility by transfer-of-technology to produce electric buses in India for the Indian market.

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Earlier this year, Mitsui invested its maiden tranche in EKA which propelled the company to establish one of the largest R&D centres in the country for electric commercial vehicles, new product development, and expanding its export footprints. The second tranche will support EKA Mobility’s manufacturing capabilities, accelerate new product development, expand market reach, and provide working capital. The investment will strengthen the company’s financial base to support day-to-day operations, supply chain optimization, and market expansion initiatives.