China is still an important market even if investors diversify from it now, says Peak XV
Shailendra Singh.
Lionel Ng | Bloomberg | Getty Images
China will remain an important market for investors in the long term, even if other countries are now benefiting from investments flowing out of China amid escalating tensions with the U.S., according to Peak XV Partners, formerly Sequoia Capital India and Southeast Asia.
“The China Plus One strategy, in terms of sourcing and so on, is definitely benefiting places like India, Southeast Asia,” said Shailendra Singh, managing director of Peak XV Partners, one of Asia’s biggest venture capital firms with $9 billion of assets under management.
“In the very long term, if you take a 10, 20, 30-year view, if you assume that geopolitics will find some new normal, China is going to be a huge economy, and good businesses will be built in China,” Singh told CNBC’s Tanvir Gill.
Last year, Sequoia split into three independent geographic units – Sequoia Capital in the U.S. and Europe, Peak XV Partners in India and Southeast Asia and HongShan in China. The move came amid increasingly strained relations between Washington and Beijing.
Peak XV has invested in over 400 companies in the technology, software, financial services and consumer space. They include fintech firm Pine Labs, Singapore-based online retailer Carousell, Indonesian ride-hailing giant Gojek as well as Indian edtechs Byju’s and Unacademy.
For years, China has been Asia’s technology and innovation powerhouse, being home to tech juggernauts including Alibaba Group and Tencent. It has also gained the title of being the world’s factory, producing low-cost consumer goods as well as most of the world’s iPhones and electric vehicles.
However, firms such as Apple and BMW have been diversifying their supply chains away from China amid geopolitical concerns. Apple now reportedly makes around 1 in 7, or 14%, of its iPhones in India, after stringent Covid controls in China disrupted its operations there.
While India and Southeast Asian countries have been benefiting from such diversification efforts as companies set up operations elsewhere, China will still be an important market, said Singh.
“All of us around the world, while India or Southeast Asia might benefit in the short term, should really be thinking about how would we work well with China in the long term,” said Singh.
David Roche, president and global strategist at Independent Strategy, said in March that India won’t replace China in global trade as the Chinese model was “based on achieving global market share” while the Indian model is “about domestic market development.”
“India will continue to make progress but it will a slow and steady progress, and not at all similar to the Chinese model,” said Roche.
Technology
Here are the SpaceX employees who were elected to run Musk’s new company town of Starbase, Texas
The SpaceX Starship sits on a launch pad at Starbase near Boca Chica, Texas, on October 12, 2024, ahead of the Starship Flight 5 test. The test will involve the return of Starship’s Super Heavy Booster to the launch site.
Sergio Flores | Afp | Getty Images
Over the weekend, Elon Musk got his new company town along the Texas Gulf Coast. Controlling the city are three SpaceX employees, who all ran unopposed.
As NBC News reported, the election determining incorporation of the city of Starbase concluded on Saturday night, with 212 votes in favor and only six against. Just 143 votes were needed for the measure to pass.
Starbase was victorious in becoming a type C city, which in Texas applies to a previously unincorporated city, town or village of between 201 and 4,999 inhabitants. The city includes the SpaceX launch facility and company-owned land covering a 1.6 square-mile area.
The mayor is 36-year-old Bobby Peden, who has spent more than 12 years working for SpaceX and is currently vice president for Texas test and launch operations. Prior to joining the rocket maker in 2013, Peden was a graduate research assistant at the University of Texas at Austin, according to his LinkedIn profile.
Starbase has two commissioners, both from the SpaceX employee ranks.
One is Jenna Petrzelka, 39, who was an operations engineering manager at SpaceX until July, and now identifies as a philanthropist, according to her application to be on the ballot. She’s married to Joe Petrzelka, a vice president of Starship engineering and almost 14-year veteran at SpaceX.
The other commissioner is Jordan Buss, 40, a senior director of environmental health and safety for SpaceX who joined the company in 2023.
Musk, who has assumed a central role in President Donald Trump’s administration responsible for slashing the size of the federal government, began acquiring land for SpaceX in Boca Chica, Texas, about a decade ago. The first integrated Starship vehicle launched from the site, known as Starbase, in April 2023, and exploded in mid-flight.
The U.S. Fish and Wildlife Service soon disclosed details about the aftermath of the explosion, including that a “3.5-acre fire started south of the pad site on Boca Chica State Park land,” following the test flight.
State and federal regulators have fined SpaceX for violations of the Clean Water Act, and said the company had repeatedly polluted waters in the Boca Chica area. Environmental advocates and indigenous groups have also sued both the Federal Aviation Administration and SpaceX over the company’s flight tests and launch activity in the area.
Those groups said in legal filings that SpaceX caused harm to local habitat and endangered species due to vehicle traffic, noise, heat, explosions and fragmentation caused by the company’s construction, rocket testing and launch practices.
A SpaceX spokesperson didn’t immediately respond to a request for comment.
In a post on X on Saturday, the account for StarbaseTX wrote, “Becoming a city will help us continue building the best community possible for the men and women building the future of humanity’s place in space.”
WATCH: SpaceX launches third test flight of massive Starship rocket
Hinge Health’s TrueMotion feature.
Courtesy: Hinge Health
Hinge Health on Monday updated its prospectus to include the results from its first quarter, which showed accelerating revenue growth over its fourth quarter.
The digital physical therapy startup filed to go public in March, but it has not shared a price range yet. Hinge said that revenue in its first quarter climbed 50% to $123.8 million, up from $82.7 million during the same period last year. Hinge reported $117.3 million in revenue during its fourth quarter, up 44% from the same period in 2023.
Hinge said its net income for the period was $17.1 million after taxes, up from a net loss of $26.5 million after taxes during the same period last year.
The company is attempting to go public at a time of extreme economic uncertainty and market volatility, spurred largely by President Donald Trump’s sweeping tariff policy. Several companies, including online lender Klarna and ticket marketplace StubHub, have delayed their long-awaited IPOs.
Hinge’s updated prospectus signals to investors that the company is planning to forge ahead.
While the company’s revenue jumped 50%, the cost of goods sold fell slightly. That allowed Hinge to lift its gross margin to 81% from 70% a year earlier and record an operating income of $13.1 million after losing $31. 4 million in the same period a year earlier.
Hinge uses software to help patients treat acute musculoskeletal injuries, chronic pain and carry out post-surgery rehabilitation remotely. Large employers cover the costs so their employees can access Hinge’s app-based virtual physical therapy, as well as its wearable electrical nerve stimulation device called Enso.
Daniel Perez, Hinge’s CEO, and Gabriel Mecklenburg, the company’s executive chairman, co-founded the company in 2014 after experiencing personal struggles with physical rehabilitation.
Correction: A previous version of this story incorrectly stated that Q1 2025 was the company’s first profitable quarter. Hinge was profitable previously.
WATCH: IPO window likely to open in first half of 2026: PitchBook
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