Lightspeed India Partners announced Tuesday that LPs has closed $ 275 million on its third fund as the leading American venture company plans to increase its investments in the world's second largest internet market.
The new fund, the largest for India, will enable Lightspeed India Partners to get early on with more than two dozen startups in the region, said Hemant Mohapatra. a partner of the company in an interview with theinformationsuperhighway.
The announcement comes after the company, which has been investing in India since 2007, carried out two high-profile partial disposals from budget-district startup Oyo and edtech giant Byju & # 39; s last year, which combined cash returns of more than US $ 900 million Dollars earned.
Some of his other major bets include supporting Udaan's business-to-business market, which was valued at more than $ 2.75 billion last year, local social media platform ShareChat, which is in advanced stages of discussion is located to raise capital greater than $ 1 billion. and SaaS startups DarwinBox, Yellow Messenger and OkCredit.
The company, which has six partners in the region, closed its first dedicated fund for India for $ 135 million in 2015. In 2018, it closed its second fund for the region with a size of $ 175 million. To date, the venture company has invested more than $ 750 million.
The Indian arm, which typically invests in the early stages of a startup, continues to work with its global mothership to write larger checks and support some portfolio startups in later stages. (More than 80% of its investments have been made in seed or Series A companies in India.)
"This is one of the strongest points of differentiation we have. There aren't many venture companies that have such a global presence. Our synergy with the global fund continues," said Mohapatra. (Lightspeed is also well represented in China. Im Last year the Chinese branch announced a fund of $ 560 million.)
Lightspeed, which closed a $ 4 billion fund worldwide earlier this year, is one of the few American venture firms aggressively looking for deals in India. Sequoia, its global partner, announced two $ 1.35 billion venture funds for India and Southeast Asia last month. 11 of his early stage bets have become unicorns in this region over the past 14 years.
Mohapatra said the Indian startup ecosystem has matured in recent years, showing high growth and delivering great results. There are also more exits than ever before. Earlier this month, Byjus acquired WhiteHat Jr., an 18-month-old startup teaching children to code, for $ 300 million in cash.
Indian startups raised more than $ 14.5 billion last year – a record for the local community. The coronavirus has slowed the funding frenzy in India like any other market.
Mohapatra said some of the company's portfolio startups had been disrupted by the virus, but noted that most startups are moving forward unimpressed and some have accelerated in recent months.
“Lightspeed believes that this is where the best entrepreneurs and companies of the future will emerge. Strong founders are harnessing the tailwind of the growth of India's digital ecosystem to build a new future and Lightspeed is determined to support these founders, ”the company said in a statement.