Hurun list: Sequoia Capital is top backer of Indian unicorns with 8 bets

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August 27, 2020 5:45 AM

Sequoia Capital India made its debut in India in 2006. Till date, Sequoia has closed eight funds in India. SoftBank has invested in seven of the leading unicorns in India, including Paytm, OYO and Ola Cabs.

Sequoia Capital India made its debut in India in 2006.Sequoia Capital India made its debut in India in 2006.

Indian billionaires are seen far behind global funds such as Sequoia Capital and SoftBank in investing in Indian unicorns and creating wealth, according to the Hurun India Top Unicorn Investors List 2020 released on Wednesday.

US-based Sequoia Capital, Japan’s SoftBank and UK-based Steadview Capital topped the list, which is a compilation of all the investment firms that have invested in three or more India-based unicorns as of August 20.

Hurun Report India MD and chief researcher Anas Rahman Junaid said: “These investors play a significant role in accelerating the creation of new wealth in India. The success of these investors goes on to show that Indian HNIs should actively start allocating part of their portfolio towards start-ups.”

Sequoia Capital India made its debut in India in 2006. Till date, Sequoia has closed eight funds in India. SoftBank has invested in seven of the leading unicorns in India, including Paytm, OYO and Ola Cabs.

“The fund’s leader, Masayoshi Son, is known for his expertise and vision in placing smart bets on the global unicorns.In 2018, the investment giant gained 60% returns on its US$2.5 billion investment in Indian e-commerce company Flipkart. It is considered to be one of the biggest achievements of SoftBank in Indian market, that too in a single year,” Junaid pointed out.

In 2014, UK-based Steadview Capital made its first investment in Urban Ladder, an online furniture firm. A recent disclosure to a news agency by the firm’s founder, Ravi Mehta, said the fund has invested a sum of $2 billion in India in seven unicorns.

According to Hurun, Sequoia is far and away from the world’s most successful investment platforms at finding and investing into unicorns, investing into one in five of the world’s known unicorns, followed by Tencent, Softbank, IDG and Hillhouse Capital, Tiger Fund and Goldman Sachs.

“Unicorns are supposed to be hard to find, but investors like Sequoia, Tencent, Softbank and IDG make it look easy, ”Junaid said.

“In China, some of the autodidactic new wealth creators who have cashed out by exiting their business have now become investors and mentors.Part of the success of Chinese wealth creation has also been attributed to this “giving back” attitude of the successful, young entrepreneurs ,” he said.

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