According to sources, Venture fund Sequoia Capital has claimed a new high by closing a new $920 million fund capital, a large portion of which will be invested into Indian Startups. This coming in as a very good sign of bullish times ahead for the Indian startup ecosystem. The fresh fund inflow makes Sequoia’s total assets under management more than $3 billion in India. This is the highest raise by any VC fund for India-specific investments, undoubtedly, keeping secure the leadership slot for Sequoia’s in the domestic early-to-growth stage inestments market.
Sequoia Capital, has been an investor in numerous startups and a lot of companies Just Dial, Freecharge, Zomato, Oyo Rooms, consider Sequoia as its backer. Around lats year the VC funds assets under managements in India was around $800 million. A formal announcement from Sequoia Fund V is still awaited.
For sometime now all investors have been very cautious in investing new money into the startups and the flow of money had slowed down. Despite heightened venture activity in the last two years, exits for investors are still a big concern in India, unlike more mature markets like the US and China. While 2015 saw mergers and acquisitions, led by the larger startups like Snapdeal, Flipkart and Ola, those were mostly a move towards consolidation.
Sequoia, had also backed tech giants like Google and Apple in their very early stages. In April last year, Sequoia had added another $210 million to its existing $530 million-India fund which it had raised in 2014.
Last year, Sequoia’s peers, including Accel Partners, SAIF Partners, Kalaari Capital and Lightspeed India, brought in new capital. Some of the fund’s investments last year included Oyo Rooms, Grofers, Roadrunnr and Craftsvilla, among others. Since its inception in 2006, Sequoia has invested in 100-plus companies across sectors such as technology, healthcare, consumer and financial services.