Silicon Valley-based venture capital firm Sequoia Capital is looking to raise about $800 million (Rs 5,000 crore) for a new India-focused fund, that will be utilised to invest in several seed rounds in the country in the coming years, said a report in The Economic Times.
The new $800-million fund will be Sequoia’s largest venture capital fund for India, and one of the biggest in the venture and growth capital category in recent years.
The firm is expected to initiate the money raising process for the new country-focused fund in the next 6-12 months, and may begin approaching limited partners, (industry parlance for investors in the fund) as early as October this year, the report said.
The venture capital (VC) firm has been aggressively supporting mid-to-late stage startups after it unveiled a $530-million India-focussed fund in May 2014, nearly six years after it raised its previous corpus of $725 million in August 2008. The firm has invested in around 100 Indian companies so far, including startups like Micromax Technologies, Zomato Media, and Just Dial.
Between April and June 2015, Sequoia Capital India was the most active venture capital investor in Asia, according to a report by CB Insights and KPMG. During this period, Sequoia made three major investments in India including that in the hyper-local grocery delivery platform Grofers, the on-demand grocery app Peppertap, and Urban Ladder, an online furniture retailer.
Sequoia Capital specialises in incubation, seed stage, start-up stage, early stage, and growth stage investments in private companies across sectors including financial services, healthcare, internet, mobile communications, outsourcing and technology. Currently, it has nearly $2 billion assets under management.
Until past year when several firms including Tiger Global Management entered India, Sequoia Capital was perhaps the only pure global venture capital firm to have a presence and investments in India.