Nexus Venture Partners has announced the closure of its seventh fund (Nexus Ventures VII) of $700 million to back startups in India and the US. This makes it it one of the many VC funds which has managed to raise a large fund even as investors have turned cautious due to global macroeconomics headwinds.

Nexus said in a statement on Wednesday that its latest fund will look to back startups across AI, SaaS, fintech and commerce. In India, Nexus is already a key investor in startups such as Unacadmey, Delhivery, Druva, Zepto, Rapido and others.

“With one of the largest developer bases in the world, India is emerging as a key innovation and talent hub for global companies driving AI and software revolution. India is also amongst the fastest-growing economies on the planet, with accelerating digital consumption powered by best-in-class mobile data networks and advanced payments infrastructure,” the VC firm said in a statement.

The VC firm pointed out in its statement that the pandemic has accelerated digital adoption worldwide across enterprises and consumers. “Remote workforces have enabled startups to flourish by leveraging talent independent of geography,” Nexus added.

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The seventh fund comes eight years after it raised around $450 million in its sixth fund in 2015. Nexus invests in both seed and early-stage companies in consumer retail, financial services, healthcare, mobility, edtech, etc. In India, Nexus has investments in more than 100 startups, with multiple exits.

Apart from Nexus, other India-focused VC firms have raised new funds this year to invest in startups in India. FE reported last year that 2022 saw a record number of India-focused VC and private equity (PE) funds raising fresh capital for investing in various tech startups of the country, outpacing all previous year’s records. This is despite a slump in VC and PE rounds and high inflationary pressures.

Some of the notable ones include Sequoia India’s $825-million growth fund, Elevation Capital’s Fund VIII worth $670 million, Accel India’s sixth fund worth $550 million and many others. SoftBank, the largest foreign investor in India, deployed approximately $14 billion over the past decade in India. In October 2021, Marc Andreessen and Ben Horowitz-led a16z made its first investment in India, with suggestions of more India activity to come.