India’s recent move to curb foreign direct investment (FDI) from countries including China may stymie the expansion of Chinese technology giants in the country, leaving start-ups in the world’s second most populous nation scrambling for funding and hi-tech know-how, experts say.

The stakes of Chinese firms like Alibaba and Tencent in some of India’s most lucrative start-ups, such as Paytm and Dream11, may be threatened by new investment restrictions, experts say.