Global venture capital firm Sequoia Capital has raised its largest India focused fund to date. According to sources close to the development, Sequoia has received investment commitments for the entire $800-million fund in less than two month’s time since it began reaching out to investors.
Sequoia registered the investment vehicle for the fund, called Sequoia Capital India V, with the US market regular Securities and Exchange Commission ( SEC) in November last year. “The entire fund has been raised from Sequoia’s existing set of investors or Limited Partners ( LPs), who are mainly pension and endowment funds registered in US,” said a senior investment banker. “They are not accepting fresh investments for now and are in the process of regulatory filings,” he added.
Sequoia Capital India remained unavailable for comments but multiple sources told FE that a formal announcement of the new fund could be made in a month’s time.
With this, Sequoia which has emerged as the most active VC fund in India with investments in over 90 companies, is expected to increase the number of deals as well as investment values in near future. Sequoia’s investments typically range from seed stage funding in start-ups to growth capital in relatively mature companies. It invests between $100,000 and $1million in seed stage, between $1 million and $10 million in early stage, and between $10 million and $100 million in growth stage investments.
Sequoia has invested close to $1.5 billion in India till date as per industry reports. Last year, it raised an additional $210 million for its existing $530 million fund it raised in 2013, which sources say has been fully deployed.
This would be Sequoia’s fifth India focused fund and there is speculation that it may change its investment strategy following its launch and begin focusing on relatively larger investments. Globally, Sequoia Capital is known for its early stage investments in some of the world’s biggest technology companies like Apple, Google and Paypal but in India is often singled out for missing the big e-commerce opportunity and for famously refusing early stage investment in online retailer Flipkart, which is currently valued at close to $15 billion.