In the biggest funding round by any VC fund for India, Sequoia Capital has closed a massive $920 million fund which will be mostly invested in the Indian companies, reported the Economic Times.
Although there has not been an official confirmation yet, but according to people familiar with the matter, the fund closed more than a month ago with most of the regulatory work already completed.
The fund was registered last year in the name of Sequoia Capital India V with the US market regular Securities and Exchange Commission (SEC). At that time, the fund was value was speculated to be around $800 million. Reportedly, the fund has been raised from the existing investors in Sequoia, also called Limited Partners(LPs), who are mainly pension and endowment funds registered in the US.
The funds come at a time when the investments in Indian startups have slowed down considerably compared to the last two years. The investors have grown more cautious and are looking for profitable business models and consolidation options in the future.
Sequoia, however, remains one of the most prominent and active VC firms in India, having invested in over 90 companies across sectors such as technology, healthcare, consumer and financial services.
Its portfolio companies include some of the popular startups in India such as Just Dial, Freecharge, Zomato, Oyo Rooms, Grofers, RoadRuneeer, CraftsVilla, etc.
Interestingly, despite being behind many popular Indian startups, Sequoia had refused an investment in now $15 billion worth Flipkart during its early days. On a global scale, Sequoia had also invested in the early stages of tech giants such as Google, PayPal, and Apple.
Its investments usually range from early stage rounds in new startups to the growth stages in relatively mature companies. The ticket size of its investments typically ranges from $100,000 and $1million in seed stage, between $1 million and $10 million in the early stage, and between $10 million and $100 million in growth stage investments.
As per the industry reports, it has invested close to $1.5 billion in the Indian companies and the recent round has taken its total assets under management to more than $3 billion in India.
It had first raised an India-focussed fund in the year 2008 by raising $725 million. Last year, it had raised an additional $210 million fund for its then existing $530 million it raised in 2013.
According to experts, Sequoia may change its investment strategy a bit with its new fund and focus on relatively larger investments.