One of the more prominent venture capital firms in the Indian startup ecosystem’s investment scene, Nexus Venture Partners has raised $45o million for its fourth fund, taking total capital assets under its management over a Billion — also making it the first Indian firm to achieve such feat.
This makes it the largest domestic VC firm crossing $1 billion in assets and the second largest VC firm behind Sequoia Capital. It has now raised $1.1 billion across four funds (Fund I ($100mn) in 2007, Fund II ($220mn) in 2008 and Fund III ($270mn) in 2012) and is on second position behind Sequoia Capital which has $2.2 billion funds.
The closest domestic rivals of Nexus include Kalaari Capital and Helion Venture Partners who have raised $650 million and $600 million, respectively across three funds. The $450 million fund is the second largest fund raised this year after Sequoia Capital recently added $230 million to its $530 million India-focussed funds announced in May 2014.
This round of Nexus Venture Partners has also led to an increase in total capital raised by India-focussed funds from about $1 billion in 2014 to $1.5 billion this year. These include funds by SAIF Partners closing a fundraise of $350 million, Accel Partners $305 million, Kalaari Capital $290 million and Lightspeed Venture Partners $135 million.
The investors in the latest round of Nexus remain the same from the previous three rounds and include endowments, foundations, and financial institutions across North America, Europe and Asia. Naren Gupta, Co-Founder & MD, Nexus Venture Partners, said,
We are thankful to our investors that continue to back us and believe in our investment philosophy.
The company will continue with its strategy of funding in early stage and seed stage companies with a focus on tech-based ventures in sectors such as Enterprise technology, healthcare, financial services, big data, Consumer Internet, Mobile, SaaS, Business and consumer services.
It has so far invested in over 60 companies since its inception in 2006 and was one of the early investors in Snapdeal.Its other major investments include OLX, Stayzilla, Netmagic, RoadRunnr, Suminter, DimDim, Unicommerce and WhatsOnIndia.
It is focussed both on Indian and Silicon Valley startups, however, according to its co-founder Naren Gupta, the Indian firms such as Snapdeal, Shopclues, Delhivery, Craftsvilla represent 70-80% of the capital invested by the company.
A presence in Silicon Valley has allowed Nexus Venture Partners to sell its investments to the US companies. For example, a cloud provisioning platform, Cloud.com was acquired by Citrix; open source cloud storage, Gluster was acquired by Red Hat; and DimDim, an Open Source Web Conferencing was acquired by Salesforce.com.
Some of the recent investments of NExus Venture Partners include $2.5 million investment in Goodbox and participation in $10 million funding round of RoadRunner, and $34 million Series C round of CrafsVilla.