Sequoia Capital raises USD 2.85 billion to invest in Indian and Southeast Asian firms

Sequoia India and Sequoia Southeast Asia have raised USD 2.85 billion in a series of funds to invest in companies, making it the VC firm's largest fund for the area and more than doubling its previous fund.

Sequoia is introducing a specific South Asian fund worth USD 850 million for the first time, while the Indian venture and growth funds will receive USD 2 billion, according to a blog post on Tuesday. Sequoia's total committed capital in India and Southeast Asia now stands at USD 9 billion, according to SEC filings and previous fundraising announcements.

Sequoia Capital is one of India's most active venture capital firms. Sequoia India has invested in over 400 startups across India and Southeast Asia, including Byju's, Zomato, Unacademy, Pinelabs, and Razorpay, 36 of which are unicorns (valued at more than USD 1 billion). Nine of the companies it has backed have gone public in the last 18 months (through IPOs).

"This financing, which comes at a time when markets are beginning to cool after a very long bull run, underlines our deep commitment to the area and our limited partners' conviction in India and Southeast Asia's long-term growth story," it added. Sequoia's objective to help "daring founders build iconic companies from idea to IPO and beyond" will be bolstered by the additional funds.

It claimed that the region's startup ecosystem had risen quickly in the recent decade, and that India had surpassed the United States and China to become the world's third-largest startup hub last year. Southeast Asia, on the other hand, is on course to become a $1 trillion digital economy by 2030, according to the report.

"In the previous decade, India and Southeast Asia's startup and venture capital ecosystems have advanced significantly and will continue to do so. Markets will change valuations and velocity "It was stated. Sequoia India and Southeast Asia want to "double down" on their efforts to assist founders in building sustainable businesses.

"With ever-deepening markets, increasing consumption power, supporting legislation, and high talent density, we are at an interesting juncture in India and Southeast Asia," Sequoia stated. In India and Southeast Asia's developing economies and fast-changing societies, there is a strong sense that 'now is our moment.'

In the coming decade, many significant enterprises with regional or worldwide footprints will emerge from this region, according to the report. "We remain committed to our aim to help founders develop enduring enterprises." Sequoia will invest USD 2 billion of the USD 2.85 billion it has raised in Indian firms, making it the largest venture capital investment in the country's history.

This fund is greater than Accel Capital's (USD 650 million) and Elevation Capital's (USD 450 million) funds (USD 670 million). Sequoia has been found in India for 16 years and Southeast Asia for ten years.

"The business has 36 unicorns in its portfolio and has collaborated with over 400 entrepreneurs across numerous sectors, stages, and market cycles." "The VC company saw nine IPOs between 2021 and 2022, with significant ones like Freshworks and Zomato," it stated in a separate statement. The corporation claims that its actions in the region help to grow and maintain the ecosystem in ways other than financial.

"Surge, a 16-week programme for early-stage entrepreneurs that began in 2019, has grown to 246 founders from 112 startups across more than 15 industries."

Last year, it also introduced Sequoia Spark, a fellowship and mentorship programme for female founders, as well as Sequoia Build, a programme for growth-stage firms striving to scale sustainably," according to the press release.

With this round of funding, Sequoia India will continue to work with the next generation of Indian entrepreneurs to establish long-lasting businesses at the seed, Series A, and growth stages. It will also continue to invest in efforts to interact with entrepreneurs, governments, co-investors, and partners across the ecosystem. "The Indian market is characterised by rising consumer power, favourable rules, and a high talent density. Today's entrepreneurs are using technology to tackle a wide range of problems with the goal of creating value for millions of people in India and around the world.

"In the coming decade, numerous significant enterprises with regional or global footprints are projected to emerge from this region," the statement continued.