At a time when major investment groups are planning or have already launched India-focussed funds, one of the more prominent investors in Indian startups, 500 Startups is reportedly reconsidering its decision for the same.
According to a report by the ET citing anonymous sources who refused to be named, the “Startupwallah”- India focussed micro-fund by 500 startups- may not come into reality. Startupwallah was set up by 500 Startups in March last year which was to be officially launched in the middle of the year.
It was to invest in about 10-12 startups last year. The company was also reportedly planning to raise $10-20 million for this entity. However, neither of that happened.
And now it looks like the company may have put those plans on a hold for a while.
Their overall strategy is changing given that they have struggled to raise money for their latest global fund. So the conversations around an India fund has slowed down considerably practically negligible over the past 6-12 months,
said one of the unnamed sources to the ET.
500 Startups is one of the popular startup accelerators and investment groups, primarily focussed on early seed stage investing. It has invested in over a 1,000 startups across 50 countries. It has particularly focussed on growth markets such as India, Mexico and Brazil.
In India, it has been investing since 2011 out of its global fund and has so far invested in 30 startups including popular startups like WalletKit, TradeBriefs, Instamojo, ZipDial (acquired by Twitter), PriceBaba, and gazeMetrix.
Back in 2012 also, 500 Startups founder Dave McClure had tried to raise an India-focussed fund but later put that on hold citing the immature market as reason.
The Startupwallah micro-fund for India was supposed to be on the lines of other micro-funds set up by 500 Startups in South East Asian regions. These include a $15-million South Korea fund called 500 Kimchis and a Southeast Asia fund called 500 Durians.