Bessemer Closes Second India-Focussed Fund At $350 Mn

SUMMARY

The VC firm is looking to invest in early-stage founders building across AI-enabled services and SaaS, fintech, digital health, consumer brands and cybersecurity

Vishal Gupta and Anant Vidur Puri, partners at BVP India will be at the helm of this investment strategy

The investment company has backed more than 80 startups in India

US-based venture capital firm Bessemer Venture Partners has closed its second India-focussed fund with a corpus of $350 Mn (INR 3,052.3 Cr) to support early stage startups.

The global VC firm is looking to invest in startups across sectors like AI-enabled services and SaaS, fintech, digital health, consumer brands and cybersecurity, Bessemer said.

Vishal Gupta and Anant Vidur Puri, partners at Bessemer’s Bengaluru office, will be at the helm of the investment strategy and invest in the most promising entrepreneurs, the firm said.

Commenting on the new fund, Gupta told Inc42, “Our initial investments are primarily at the early stage, and we allocate a portion of our funds to participate in follow-on rounds in our portfolio companies as we continue to support them through their growth.”

While the firm did not disclose the number of startups that it would be investing in through the fund, Gupta said Bessemer expects the fund to be deployed in the next 3-4 years.

While Bessemer began its India operations in 2005-2006, it started investing in internet and technology startups in 2010-11. It has backed more than 80 startups in India and counts the likes of LivSpace, Home First Finance, PharmEasy, BigBasket, Swiggy, Urban Company, Perfios, among others, in its portfolio.

In 2021, Bessemer closed its India-dedicated early stage focussed fund at $220 Mn.

The firm’s new India-focussed fund to back the emerging startups of the country reflects the reviving interests of investors from the funding winter that lingered post pandemic.

The latest development comes at a time when a number of new funds have been launched for investment in Indian startups amid the receding funding winter.

For instance, Prime Venture Partners announced the launch of its fifth fund, with a corpus of $100 Mn, earlier this month to invest in early-stage Indian startups. Prior to that, it was reported that Together Fund is looking to mark the final close of its $150 Mn Fund II by June this year to back a new batch of 19-20 AI startups.