'More tech companies from Gurugram keen to set up shops in London'

New Delhi: A number of technology companies from Gurugram are keen to set up shops in London, a senior official in the office of the Deputy Mayor of London for Business said.

Speaking on the sidelines of the B20 Summit, London and Partners Country Director for India and senior leadership team member Hemin Bharucha said the reasons for setting shops in London range from the availability of venture capital funding to global demand and talent.

London and Partners is the UK capital's trade and business growth agency operating under the aegis of the Mayor of London.

While acknowledging that funding for startups is not as readily available as before, Bharucha said his firm works with MSMEs (micro, small and medium enterprises) because "big companies either already have a presence in London, or they can afford a big consulting firm."

"We see Gurugram really coming up... in the EV, sustainability, and technology space. These are very big sectors...we are also seeing a little bit of creative companies in AR and VR," Bharucha told PTI.

He said that scrutiny by investors has become more robust, which is "much needed" because so many investors have lost money.

"We don't tell every company to come to London because if they are not ready, then they will go there...and fail. It's a problem for them and us also," Bharucha said.

He further said that most MSMEs set up their first international office in London unless they have a strong connection in the US, owing to similarities in the tax and legal system, and the language of business being the same.

"So companies initially set up with five to ten people, but scale up to 100, 200, 300 people very quickly because the revenue is coming... number one customer, number two is global VC funding," he added.

About the impact of the economic slowdown across the world, Bharucha said that London, being a global city, cannot be devoid of global shocks.

The UK narrowly avoided falling into recession last year as February statistics revealed a flat output in the last few months of 2022. The UK government had warned that the economy was not out of the woods in the present year.

London and Partners is partly funded by the Greater London Authority (GLA) and other commercial ventures.