Japan's venture capital shifts to India's startups for growth

South Asia's big market remains competitive despite global slowdown

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Japanese venture capital firm Incubate Fund has backed ShopKirana, an app used by Indian mom-and-pop stores to replenish inventories. (Photo courtesy of ShopKirana)

TAKURO HOSODA, Nikkei staff writer

TOKYO -- Japanese venture capital firms increasingly are looking to India for promising investment opportunities amid an unfriendly global business environment for startups.

Incubate Fund is preparing to launch a third fund for Indian startups. The Tokyo-based company aims to put together $60 million, more than triple the capitalization of the second fund.

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