Sequoia Capital raises USD 2.85 bn to fund start-ups in India

Sequoia Capital on Tuesday announced that it has raised USD 2.85 billion to deploy across start-ups in India and Southeast Asia, the largest dedicated corpus for the region by a risk investor.

It will utilise USD 2 billion across its India venture and growth investments, while the remaining will go to the Southeast Asia companies.

Sequoia has so far deployed USD 6 billion in India and SEA across over 400 firms since launching its India franchise back in 2006.

The Silicon Valley headquartered blue-chip venture capital firm has backed Indian start-ups such as food delivery app Zomato , Software as a Service firm Freshworks, social commerce company Meesho, and edtech unicorn Byju’s.

Globally, the VC firm is well known for being an early backer of tech giants including Google, Apple and WhatsApp. This is its largest India-focussed fund, exceeding those raised by other private equity and VC firms such as Edelweiss, Brookfield Asset Management, ChrysCapital and Kedaara Capital.

“We’re pleased to announce that Sequoia India and Sequoia Southeast Asia have collectively raised USD 2.85 billion across a set of funds, including India venture and growth funds and an USD 850 million Southeast Asian fund – our first dedicated fund for the SEA region,” the company said in a statement.

“This year marks the 50th anniversary of Sequoia as a global firm, 16 years in India, and 10 in Southeast Asia. We’ve had the good fortune to partner with some of the most innovative, mission-driven founders in the region, across multiple sectors, stages and many market cycles,” it added.

It said that the new funds will bolster mission to help daring founders to build legendary companies from idea to IPO and beyond. “We are grateful to our LPs for their continued support of this mission, and to our founders for their dedication to driving innovation and change,” it said.

“...we intend to double down on our efforts to help founders build healthy companies that will endure … There’s a strong sense in the emerging economies and fast-changing societies across India and Southeast Asia that ‘now is our time’. Many large companies with regional or global footprints will emerge from this region in the decade to come,” it said.

Stating that the region's startup ecosystem has grown rapidly in the last decade, it said last year India emerged as the third-largest startup hub in the world, after the US and China. Southeast Asia, meanwhile, is on track to become a USD 1 trillion digital economy by 2030, it said.

“The startup and venture capital ecosystem in India and Southeast Asia has made great strides in the last decade and will continue to mature. Valuations and velocity will move with markets," it said. Sequoia India and Southeast Asia intend to "double down" on their efforts to help founders build healthy companies that will endure.

“We are at an exciting juncture in India and Southeast Asia, with ever-deepening markets, higher consumption power, supportive regulations and high talent density," Sequoia said. There's a strong sense in the emerging economies and fast-changing societies across India and Southeast Asia that 'now is our time'.