Investing in over a dozen of startups in India, the Silicon-Valley-based, Lightspeed Venture Partners is raising $115 Mn (INR 734 Cr) India-specific fund. The Venture Partner which was investing from its global fund till now has raised the specific funds as it looks to double down on the country’s booming startup ecosystem.
The plans were formalised through a disclosure with the US capital market regulator, Securities and Exchanges Commission (SEC).
Indian startups have raised over $1.7 Bn in Q1 of 2015 with only 12.9% raised by enterprise software company. However, as Dev Khare, MD, Lightspeed, retorts that top 30 B2B software product companies in India are worth $6 Bn and employ nearly 20,000 people. Hence, the Lightspeed team is poised to fuel the startup ecosystem in India and is committed to invest in both consumer and enterprise technology. Prior to this LightSpeed had raised $950 Mn last year in its 10th global flagship fund which was being used as the investment bank.
Lightspeed Venture Partners has been investing in India since 2004 focusing on direct and cross-border businesses. The firm generally invests $1 to $25 Mn in growth or early-stage startups seeking to disrupt or transform large markets in the domestic economy. Bejul Somaia and Dev Khare led Lightspeed Venture Partner has invested in over quite a few startups like Vee, Crafstvilla, Limeroad, LocalOye, PhoneWarrior, ITzCash, Fashionana and Dhingana across advertising and media, business services, financial services, healthcare, education and retail domains.
With the complete portfolio of over 200 investments till date, Lightspeed has invested in two startups in India this year so far. The firm invested INR 31 Cr in Internet-first restaurant, FreshMenu and $5 Mn in local service startup, LocalOye along with Tiger Global Management.
A VC investor familiar with Lightspeed’s India plans told ET, “Lightspeed has a very good reputation in Silicon Valley as an early-stage investor. The key for them will be support of the US office, which can really fasten the fundraising process in India.”