Sequoia India closes sixth fund at $695 m

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Mumbai | Published: August 22, 2018 3:54:40 AM

Funds would be used to ‘double down on investments in both early and growth stage companies in technology, consumer and healthcare sectors across India and South East Asia’

Sequoia, Sequoia India, IndustryAn email sent to Sequoia requesting further details remained unanswered till the time of going to press.

Sequoia India indicated on Tuesday that it has closed its sixth fund at $695 million. The PE fund manages approximately $4 billion of funds. The PE fund wrote on its blog that the funds would be used to ‘double down on investments in both early and growth stage companies in technology, consumer and healthcare sectors across India and South East Asia’.

“SE Asia accounts for 20-30% of Sequoia India’s investments, by value and we expect that to continue near term,” the firm stated in its blog. Sequoia India had established its presence in South East Asia in 2012 and has invested in firms like Go-Jek, Tokopedia and Traveloka who currently rank among the largest unicorns in Indonesia. Sequoia has so far made over 200 investments in the region, including India.

An email sent to Sequoia requesting further details remained unanswered till the time of going to press. Along with the closure of the sixth fund, the firm has also witnessed a departure of one of its top brass.
Abhay Pandey, who was a managing director at the firm, has decided to move on. Sequoia said that Pandey wanted to create a dedicated consumer fund.

“While Sequoia is committed to consumer investments, dedicated sector funds, however, are not part of Sequoia’s structure. We understand Abhay’s decision to chart his own course and are grateful for his contributions,” Sequoia said. Pandey tweeted about his exit saying the decision to leave the firm was a tough one.

“A very tough decision to say “farewell” after 11 terrific years is made somewhat easier as @Sequoia_India is in the best shape I have seen it in. Time to pursue my passion outside. Sincere gratitude to the founders I have had the privilege to work with, the team and my partners,” he tweeted.

Pandey’s departure is not the first of the top brass exit from Sequoia over the last year. Media reports had earlier indicated that former managing directors at Sequoia Cap, VT Bharadwaj and Gautam Mago are coming together to start a `2,000 crore investment firm titled A91 Partners.

Mark Kahn, founding partner at Omnivore says there is a huge trend of partners and principals from established venture VC and PE funds leaving to launch their own firms.

“We think this is a very positive development. More local funds who don’t report into Silicon Valley will mean more investment into sectors that have no American analogue,” Kahn said.

Sequoia has also announced five promotions. Abheek Anand, who had joined Sequoia from Facebook and has led investments in Appier, Cuemath, Grofers and MoneyTap, has been promoted as the managing director. He will focus on investments in SE Asia.

“Ishaan Mittal and Sakshi Chopra will become Principals in the growth team. Ashish Agarwal and Harshjit Sethi will become Principals in the venture team,” the firm stated.

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