Venture Capital firm Sequoia Capital in its 50th year of going global, has caught the fancy of market pundits as it raised a $2.85 billion fund dedicated to India and Southeast Asia. Despite speculations that Sequoia would postpone the dates of closing the fund, this is the biggest dedicated India fund raised by an investment firm when the market is cooling down after being bullish for a while.
Out of the total $2.85 billion, Sequoia has earmarked $2 billion for Indian startups, while the remaining $850 million is kept aside for investment in startups from Southeast Asia. It is a bold step by the venture capital firm when few of its funded Indian startups face corporate governance issues.
The firm said in a blog post, “The new funds will bolster our mission to help daring founders to build legendary companies from idea to IPO and beyond. At Sequoia India and Southeast Asia, we intend to double down on our efforts to help founders build healthy companies that will endure.”
Funds launched with a focus on WEB3
These funds will invest in crypto as well as Web 3 startups. Sequoia said in a blog post, “The Web 3 ecosystem is increasing in markets such as Malaysia, Thailand, Vietnam and the Philippines. Sequoia Southeast Asia is the region’s early-stage and growth-oriented firm with the new funds. Will invest in it.”
Due to the lack of regulations in India regarding the crypto segment, venture capital firms avoid investing in startups belonging to this segment. However, Sequoia India and its division for South East Asia have funded many such startups in the country. Despite the lack of clarity on the regulatory situation, Sequoia plans to expand into new areas such as Web 3.
The last two years saw Sequoia India tie up with three additional funds. These include CoinSwitch Kuber and Polygon. These include a seed funding round in March last year in which $195 million was raised. Just after announcing the fund, Sequoia extended funding to Nume crypto.
Sequoia to be bullish in its funding in India
Sequoia is securing $2 billion for India after two years. Currently, the venture capital firm runs three funds for India supporting startups with seed funding, venture funding and later-stage growth funding. Before closing these funds, the venture capital firm announced a corpus of $1.3 billion worth of funds for India and Southeast Asia in July 2020.
Sequoia India, whose portfolio includes companies like 1MG, BharatPe, Blinkit (formerly Grofers), Byju’s, Cars24, Coinswitch Kuber, and CRED, has recently announced new investment into BNPL firm Tabby, software firm SaaS Labs, fintech firm Lean Technologies, medical subscriptions service Kenko Health, insurance provider Digit Insurance, revenue growth firm Toplyne, crypto player Flint, POS & restaurant management firm Foodics, ed-tech firm Growth School, and market intelligence firm Slint.