India-focused VCs Bring In More Capital for Startups
India-focused venture capital firms have raised over $4.2 billion so far, with several large funds poised to bring in additional capital for deployment over the next few months, finds Entrackr
Chennai: India-focused venture funds are bringing in more capital, indicating increased investments in the startup ecosystem in the coming months.
India-focused venture capital firms have raised over $4.2 billion so far, with several large funds poised to bring in additional capital for deployment over the next few months, finds Entrackr.
Peak XV, which had allocated $2 billion for investments in India in 2022, now plans to raise a new fund in the range of $1.2 to $1.4 billion. This would mark its largest India-focused fund so far in the current calendar year.
A91 Partners, founded in 2018 by former Peak XV partners, already announced the final close of its third fund at $665 million. Venture capital firm Accel also unveiled its latest fund worth $650 million to support early-stage startups in India and Southeast Asia.
Bessemer Venture Partners closed a $350 million early-stage venture fund, while Fireside Ventures is reportedly in talks to raise $230 million for its fourth fund. Tanglin Venture Partners, a venture capital firm founded by Ravi Venkatesh, a former Tiger Global executive, is also gearing up to raise $250 million for its third fund.
The Indian government has also launched startup-focused initiatives, including a Rs 1,000 crore funding scheme to support space sector startups, and a commitment of Rs 10,000 crore through a Fund of Funds (FoF) managed by the Small Industries Development Bank of India (SIDBI).
Among different sectors, quick commerce could garner a major chunk of the funds. Fintech too is a favourite of venture capital funds. The investment sizes and numbers could be seen growing in the coming quarters.
