California based Venture Capital (vc) major Sequoia Capital is working on last minute details to raise nearly $1 billion for its latest India focused funds, according to people familiar with the matter. If there is any element of truth in this report, this year may turn out to be a much better year for the Indian startups. Indian startups witnessed a tormented period in 2017 as most VCs and investors shied away from doling out funds for them.
Sequoia’s $1 billion funds would be its largest ever India focused fund, which makes this development even more significant. The last time silicon valley headquarter VC firm raised funds for Indian market was nearly two years back. That time it raised $930 million, with a large part of this fund being channelized in some of the most sought-after Indian startups, including the likes of Zomato, Mu Sigma and BYJU’S. Snacks company Prataap and cosmetics company Vini Cosmetics are also among the high profile bets that Sequoia has taken in India.
Reliable sources claim that the latest $1 billion fund will be used not only for tech, but also for non-tech as well as consumer companies. Sources further claim that this time around Sequoia’s fund will be structured differently, with the fund getting separated between two different committees. Besides, they have hinted that final details of this fund will be worked within next 2-3 months.
Sequoia Capital is yet to confirm these reports. Mails sent to Sequoia by several media houses haven’t elicited any response so far.
Sequoia Capital and other big VCs like Accel Partners and Tiger Global can be regarded as exceptions, considering the fact that they have not shied from opening their coffers even during tough times. In fact, last year Sequoia alone doled out nearly $183 million that were invested in almost 23 Indian startups.
However, not all Sequoia bets have ended with happy endings, with the VC firm losing big on startups like Snapdeal, Freecharge, Tinyowl, RoadRunnr and Tapzo.