Matrix Partners India to raise new $450M fourth fund

Leading venture capital firm Matrix Partners India will be raising $450 million as part of its fourth fund as it looks to make further investments into emerging startups in the country.

Matrix Partners India made this disclosure through regulatory filings with the US SEC (Securities Exchange Commission).

Closed in 2019, its third fund was $300 million in size.

The VC firm was established in 2006 and invests in a variety of sectors including consumer technology, B2B, enterprise, and fintech, among others.

As per information available on its website, it has made over 100 investments in India, with over $1 billion under its management. The leading names in its portfolio include Ola, Razorpay, Ofbusiness etc.

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Matrix Partners India joins other leading VC firms including Sequoia Capital, Accel, and Elevation Capital that have launched India-focused funds. Sequoia had recently announced a $2.85 billion fund for India and South East Asia geographies, with $2 billion devoted to the South Asian country.

The VC firm announced the fundraising at a time when the Indian startup ecosystem is seeing a slowdown in funding inflow, which is likely to get more pronounced in the coming months. However, the fresh capital raised by these leading VC firms also sends positive signals to Indian startups.

According to an earlier report by The CapTable, all the major India-focused VC firms are looking at increasing the size of their funds. It noted that in January 2022, there were 93 funds looking at a target size of $8.9 billion as compared to 81 such funds with a target size of $7.8 billion in January 2021.