Sequoia Capital, one of the world’s largest and most-respected venture capital firms, is ready for an aggressive pace of investments in India as it’s pondering to raise a new USD 0.8 billion ($800 million or about Rs 5,000 crore) fund for India – the fastest growing and 3rd largest start-up ecosystem globally (Ref).
The report comes via Economic Times, which said Sequoia could start approaching limited partners as soon as October, though another source said the move is more likely 6-12 months away.
The $0.8-billion fund will be the largest Venture Capital fund for India, and one of the biggest in the venture and growth capital category in recent years.
In the past year, several hedge funds have entered India and firms like Tiger Global Management have been aggressively investing in early-stage deals and Sequoia’s deep plan to raise $0.8 billion India-foccused fund could be an action plan to counter the influence of Tiger Global, which will be good for the startup ecosystem in India.
Sequoia has nearly $2 billion under management and the new fund will make Sequoia, already a highly influential investor, one of the largest private equity and venture capital managers as well.
Sequoia has been in India for nine years and since the beginning of 2014, it has participated in at least 80 deals worth over $1.7 billion, according to data from VCCEdge. Most recently, it participated in the $100-million round raised by budget stay startup OYO Rooms, the $90-million round of healthcare app Practo, and the $80-million round of digital payments firm FreeCharge (which has since been acquired by Snapdeal).
Since 2014, Sequoia has closed more than half-a-dozen investments in the life sciences space, including in Koye Pharmaceuticals, Curatio Healthcare, La Renon, MedGenome Labs, Akumentis Healthcare and Innovcare Lifesciences. Sequoia has also been actively investing in Southeast Asia from its India fund, where it has closed nearly a dozen funding deals, including in Tokopedia, mobile marketplace Carousell and analytics platform Appier.