Sequoia Capital India Plans To Rake In $800 Mn India-Centric Fund

Treading steadily toward its goal of becoming the largest venture capital firm in India, Sequoia Capital India plans to raise about $800 Mn for its fifth India-centric fund, reports ET.

The process is expected to commence 6-12 months from now. The firm’s fourth fundraising efforts fructified in May 2014 after having raised $530 Mn – it then topped it with another $210 Mn earlier this year.

An  ET source with close knowledge of the proceedings claims that the firm may soon start approaching limited partners, industry parlance for investors in these funds, as early as October.

With $2 Bn already under its belt, the $800 Mn fund would increase the firm’s asset under-management close to $3 Bn. The stocked-up arsenal would mean that we can expect some more Sequoia-backed deals in the near future.

According to VCCEdge data, since 2014, the VC firm has backed over 80 deals worth over $1.7, including the $100 Mn raised by Oyo Rooms, $90 Mn round of healthcare app Practo, and the $80 Mn raised by FreeCharge. It also invested $20 Mn in Groupon India earlier this year and helped it break away from its Chicago-based parent company. The hyperlocal deals platform Groupon Inc relinquished its majority stake to Sequoia India and the top management of its Indian arm, and was re-branded to Nearbuy.

Other VC firms are not far behind. This year various VC firms such as Saif Partners, Accel Partners, Mayfield, and Lighthouse have raised India-centric funds. Even global VC firms are steadying their gaze on India and are increasingly raising India-dedicated funds. Japan’s Beenos Group has launched $60 Mn fund to invest in early-stage startups in India, Southeast Asia, Japan and the US.

The VC firms that have raised/announced India-centric funds this year are: