Sequoia Capital announced on Monday that its Limited Partners would be committing a total of $1.35 Billion towards the Indian startup ecosystem, in the form of two new Sequoia India funds.
We are deeply grateful to Sequoia’s LPs, who have committed $1.35B to two new Sequoia India venture and growth funds. The region’s #startup ecosystem is at a fork in the road. We believe there is an opportunity to make different choices for the future. https://t.co/x9BZ17rtsj
— Sequoia_India (@Sequoia_India) July 6, 2020
The veteran VC firm has expressed its optimism for the “depth of opportunities” within the region and as such would continue its support of ventures in India and SEA. The added resources will allow organization to support startups as they progress through the various stages, and provide backing, whether it be seed, venture or growth funding.
The coming decade will be transformational for the Indian startup ecosystem: more world class companies, profits and exits. Grateful for the trust from our LPs to continue partnering with daring founders shaping our region https://t.co/B8mUlZpdR3
— Harshjit Sethi (@HarshjitSethi) July 6, 2020
Sequoia, in its statement, has recognized its responsibility now to deliver attractive returns to their limited partners, and aims to accomplish this by backing entrepreneurs building “category defining companies”. The firm has cited India’s massive technological transformation over the recent past, and the host of successful founders that have come with it.
Sequoia further believes, that in a time of over-funding, and hyper-competition among startups, it is necessary to set the bar higher, and support those companies capable of extraordinary profitability and building a unique product that is competitive in the global market.
The injection has been divided between a venture and growth fund, receiving $525M and $825M respectively.