London: India has emerged as the second biggest investor in London after the US with country's tech firms investing in the British capital at an unprecedented rate, according to latest official figures. Since 2005 there has been a 117 per cent increase in Indian companies across all business sectors investing in London, with a 133 per cent increase in tech companies investing in the city, which accounts for 46 per cent of all projects, according to the latest data released by London & Partners, the official promotional company for London.
The figures showed that Indian companies are the second biggest investor in London, ahead of China and Japan, but behind the US. Major tech investments in London from India in recent years include software testing service Cigniti Technologies, customer support company Kayako and many others. The worldwide expansion of Indian technology companies is also reflected in new figures released today that show venture capital raised by Indian technology firms has risen to record levels.
In the last five years, investment in Indian tech companies has rocketed seven times from USD 454 million (Rs 3049 crore) in 2011 to USD 3.3 billion (Rs 22,165 crore) last year, according to analyst CB insights. Leading NRI entrepreneur and Cobra beer founder Lord Bilimoria, who presented awards to 20 Indian companies at the IE20 (Indian Emerging 20) event here last night said, "London and the wider United Kingdom offered the best opportunities for businesses to internationalise."
He said, "India has some of the brightest talents in the world. First they should think global and they have to be the best." Noting that India is a huge growing market, he said, "Once the GST (Goods and Services Tax) comes into force, it will help Indian companies a great deal."
The Mayor of London Boris Johnson MP said: "India is the fastest growing major economy in the world and Indian companies are now the second biggest foreign investor in London." The winners of the IE20 programme — designed to identify Indian companies destined for global growth — come from a broad range of categories including life sciences, artificial intelligence, IT services, cyber security, sports tech, travel tech, adtech, e-commerce and analytics. Gordon Innes, CEO London & Partners, said, "Following Indian Prime Minister Narendra Modi's visit, we wanted to bolster our already strong ties with India.
India is such an exciting economy with so many emerging, global companies. And London is the world's preeminent global city, home to 40 per cent of the top 250 companies from the Fortune Global 500." "That’s why we developed the India Emerging 20 programme: to support Indian businesses looking to scale up and internationalise. Particularly, technology businesses, because of London's recent emergence as one of the world's largest tech clusters," Innes said.
L&P is a not-for-profit public private partnership set up by the Mayor of London in April 2011 to unlock London to overseas investment.