Venture capital investors India has plans to raise fresh $2 billion (about Rs12,400 crore) new funds for booming Indian startups.
Top VC investors such as Accel Partners, Kalaari Capital and SAIF Partners – who recently scored rich returns on consumer Internet ventures such as Flipkart and fund-raising momentum that continues from 2014 when venture funds raised over $1 billion for Indian startups.
Accel Partners, which manages $230 million in India-focused capital, plans to raise $250-275 million for its fourth India fund. In the new fund, the investment outlay for each company may go up to $10 million against $5-6 million now.
Bangalore-based early stage investor, Kalaari Capital, plans to raise $200-250 million.
Delhi-headquartered SAIF Partners, which invests in early and growth stage companies, plans a $300-350 million second India fund.
Mumbai-based Blume Ventures, which targets pre-revenue stage startups, is on the road to raise $60 million, while India Quotient is raising $24.3 million and KAE Capital is in the market for a $50-60 million fund.
IvyCap Ventures is raising a $150-million second fund and plans a $40-million initial close in June.
Mumbai-based Aavishkaar, which pioneered social sector investing in India, is raising $400 million across two separate funds, one of which will invest in overseas startups.
Delhi-based Lok Capital is raising a $100-million third fund, of which $45 million is expected by June.
Elevar Equity is raising a $125-million fund, dubbed Elevar Equity III, and has already received commitments worth $34 million from investors.
India is in the middle of an unprecedented startup boom with more than 1,200 new ventures coming up across the country in 2014. The success of online retailers such as Flipkart and Snapdeal, along with rapid growth in internet usage and mobile and online shopping, has made the Indian startup space a preferred one for investors across the world.
Overall investments in Indian startups hit an all time high of $2.1 billion in 2014, nearly 50% more than the previous year, and the momentum is expected to continue this year, both in seed and mature companies.