Sequoia launches $1.35B fund to invest in startups in India and South-East Asia
Sequoia Capital expects India and South-East Asia to become home to a number of massive technology companies in the next decade.
Sequoia Capital has announced the creation of two new funds totalling $1.35 billion dedicated to investment opportunities in India.
The two new investment vehicles of the marquee venture capital fund will be a $525 million venture fund and $825 million growth fund.
In a post on , Shailendra J Singh, Managing Director of Sequoia Capital, said, “Sequoia India now operates seed, venture and growth funds, a structure that allows Sequoia to remain a relevant partner for founders at all stages of their journey. The three Sequoia India funds will continue to invest across India and SEA.”
Shailendra J Singh, Managing Director, Sequoia Capital (India) Singapore
The limited partners in this new fund are majorly from non-profits, foundations, and charities. Sequoia had closed its sixth fund at $695 million to invest in early and growth-stage companies in India and South-East Asia.
Sequoia is one the leading VC investment house in India with unicorns such as , , , and in its portfolio, and also a sizeable number of soonicorns in its list.
This fund raise comes at a time when venture capital investments in the startup ecosystem continue to decline due to the COVID-19 pandemic.
However, Shailendra remained very optimistic about the opportunities across India and South-East Asia.
“The combined GDP of India and SEA is expected to cross $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 said.
Shailendra also highlighted the hard truths that the COVID-19 pandemic has brought to the startup ecosystem where the period of exuberance witnessed an inflow of a large amount of capital, while the down cycles led to cost-cutting and negative sentiment.
He further highlighted that during the period of intense competition, startups struggled to grow rapidly with good unit economics and often posted very high losses. Besides, it also prevented large profitable technology businesses to emerged from the region.
“We are at a fork in the road, and everyone has a choice to make. From our vantage point, the future of our region will be shaped by those few founders who are resolutely committed to building enduring companies with unshakable foundations. It will take a handful of exceptional founders to show us the way, to shine the light for others to follow,” Shailendra said.
Edited by Saheli Sen Gupta