The funding freeze has been compounded by India’s move in April to step up scrutiny of investments from overseas, a move seen by some analysts as a thinly disguised deterrent to takeovers by Chinese companies, which have been big investors in India’s tech industry. And with SoftBank, another major funder of Indian start ups facing setbacks elsewhere, there is little relief expected from the Japanese technology backer. This leaves investors and start ups with few alternatives but to focus on pursuing profitability and reducing cash burn, Sid Talwar, partner at Mumbai based Lightbox Ventures, said.
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