Indian Economy News

Sequoia to invest US$ 1.35 billion from 2 funds in India, SE Asia

Sequoia India, a venture capital investor, received commitments totalling US$ 1.35 billion from limited partners for two new India and South-East Asia (SEA)-focussed funds—a US$ 525 million venture fund, and a US$ 825 million growth fund.

These funds will be utilised to double down on investments in both early- and growth-stage firms in the technology, consumer, and healthcare space. “We are excited about the depth of opportunities in this region, which is undergoing a massive technology-led transformation. The start-up ecosystem in both India and SEA has come a very long way in the last few years; the market gets deeper and the crop of founders, and their achievements, becomes more impressive each year," said Mr Shailendra J. Singh, managing director, Sequoia Capital (India) and SEA. “The combined GDP of India and SEA is expected to cross US$ 14 trillion and the number of mobile internet users will likely cross 1.5 billion by 2030. This region will become home to a number of massive technology companies during the next decade," he added.

These new funds strengthen the Sequoia’s commitment to India and SEA, where it has over 200 investments so far. In India, Sequoia invested in Bira, Byju’s, Zomato, Mu Sigma, Freshworks, Druva, Freecharge, OYO Rooms, Practo and JustDial, among others.

Mr Singh said that a fund-raise signifies huge responsibility to deliver attractive returns to investors, the majority of which are non-profits, foundations, and charities. Although, due to COVID-19 pandemic scare, fund raising has been a daunting exercise. It has been difficult year for founders, employees, investors, and for society, at large. “We believe there is an opportunity to choose a different path. Our ecosystem has arrived at a fork in the road," Mr Singh added.

India has world-class founders and a formidable tech talent, it is time to build more products that can compete globally on quality, not just on price. “We need more unique and innovative start-ups, pursuing original ideas in addition to “X of Y" business models. We need more examples of authentic leadership, improvements in gender diversity, and inclusive, safe, and nurturing work culture for our teams. In short, our ecosystem needs exemplary, enduring, lighthouse companies of the future, that can prosper for decades and be resilient across market cycles," added Mr Singh.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.