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May 11, 2024

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Top 10 Venture Capital Firms in India


Venture capital has played a crucial role in fueling the growth of startups in India by not only providing financial support but also offering strategic guidance and access to valuable networks. These venture capitalists have been instrumental in driving innovation, creating jobs, and boosting economic development within the startup ecosystem. They inject much-needed funds into startups, help in enhancing their quality, accelerate the pace of innovation, and foster a positive outlook towards the culture of entrepreneurship.


In India, venture capital firms typically operate as partnerships involving both limited and general partners. The lifespan of a VC fund usually spans from 7 to 10 years, with investments being made in the initial years and returns being realized towards the end. The potential returns on investment can be substantial, sometimes reaching up to 10 times the initial capital.


The venture capital investment landscape in India has experienced a remarkable surge, with funding rocketing from $1.6 billion across 313 deals in Q4 2023 to an impressive $3.2 billion across 354 deals in Q1 2024, according to KPMG. This exponential growth raises the question: why has India become such an attractive hub for VC funding? The answer lies in the vibrant startup ecosystem the country boasts of. In the past decade, India has witnessed an unprecedented rise in startups, with many even achieving 'Unicorn' status. This boom in startup activity can be largely attributed to the influx of venture capital funding, solidifying India's position on the global startup stage.


Key players like Sequoia Capital India, Accel India, Matrix Partners India, and Nexus Venture Partners have consistently been at the forefront of supporting and nurturing the startup ecosystem. Their involvement has been instrumental in shaping success stories that continue to inspire budding entrepreneurs.



Actively Investing VC Funds Snapshot


VC Fund

Founded Year

Notable Investments

Investment Focus

Recent Fund Size

Sequoia Capital India 

2000

Byjus, Zomato

Tech, Consumer, Healthcare

$1.35 B

Accel Partners

2005

Flipkart, Swiggy 

Tech, Consumer

$550 M

Nexus Ventures Partners

2006

Postman, Delhivery

Tech, Consumer Services

$450 M

SAIF Partners

2001

Paytm, Swiggy

Internet, ITES

$400 M

Matrix Partners India

2006

Ola, Practo

Tech, Consumer 

$300 M

Chiratae Ventures

2006

FirstCry, Lenskart

Tech, Consumer

$275 M

Kalaari Capital 

2011

Cure.fit, Urban Ladder

Tech, Consumer

$160 M

Blume Ventures

2010

Unacademy, Purplle

Tech, Consumer

$102 M

3One4 Capital

2016

Licious, BetterPlace

Tech, Consumer

$100 M

India Quotient

2012

Sharechat, LendingKart

Tech, Fintech

$60 M


Let’s explore the top 10 VC Firms in India that are known for their active investments in the Startup ecosystem;

  1. Peak XV 

Peak XV Partners, formerly Sequoia Capital India & Southeast Asia, is a well-established venture capital company with a 17-year history in India and 10 years in Southeast Asia. They have managed to complete more than 400 investments, worked alongside over 50 unicorns, and observed the launch of 20 IPOs. Their main objective is to collaborate with founders from different offices to support them in accomplishing their goals through community-oriented programs.


Notable Investments: Zomato, Byjus, Oyo Rooms, Freshworks.


Sector Focus: Sequoia Capital invests in various sectors, such as Technology, Consumer, and Healthcare.


2.   Accel Partners


Accel Partners India, a branch of the worldwide venture capital firm Accel, has been regularly investing in Indian tech startups since 2008. Focusing on consumer internet services, online marketplaces, and SaaS, the company has been instrumental in providing early-stage funding for startups such as Flipkart and Freshworks. Accel Partners India, with assets totaling more than $1.6 billion, has grown its team in India to include over 50 professionals.


Notable Investments: Flipkart, Swiggy, Freshworks and Myntra.


Sector Focus: Accel India focuses on several sectors including Consumer, Enterprise SaaS, Fintech, Healthcare, and B2B.


3.  Blume Ventures


Blume Ventures is a venture capital firm based in India that backs innovative founders addressing difficult issues with the potential for a societal impact. Since its founding in 2010, Blume has funded more than 100 startups in different industries and locations. They are famous for supporting startups that focus on addressing specific issues faced in India while also having global ambitions.


Notable Investments: GreyOrange, Unacademy, Turtlemint and Purplle


Sector Focus: Blume Ventures invest in several sectors including Tech Infrastructure, Healthtech, Edtech, Fintech, and Consumer.


4.   Kalaari Capital


Kalaari Capital is an Indian venture capital firm that focuses on technology and specializes in making early-stage investments. Since 2006, Kalaari has been backing forward-thinking entrepreneurs creating new solutions that reshape the way Indians live, work, shop, and interact. They are heavily involved in India's flourishing startup ecosystem, with a focus on creating companies that can grow effectively.


Notable Investments: Cure.fit, Dream11, Snapdeal and Myntra.


Sector Focus: Kalaari Capital invests in multiple sectors including E-commerce, Mobile, Technology, and SaaS.


5.  Matrix Partners India


Matrix Partners India is a well-known investment company that offers important backing to outstanding entrepreneurs. Having a worldwide footprint for more than forty years, the company focuses on important areas like consumer technology, B2B commerce, enterprise, and fintech within the Indian market.


Notable Investments: Ola, Practo, Dailyhunt.


Sector Focus: Matrix India’s focus areas include Consumer Internet, Fintech, B2B, and SaaS.


6.   Nexus Venture Partners


Nexus Venture Partners has been teaming up with innovative business owners, with a specific emphasis on companies with a strong product focus in the early stages. The company has a specialized advisory team based in Bangalore that focuses on investing in technology-driven businesses in India, overseeing assets valued at more than $1.5 billion.


Notable Investments: Delhivery, Zolo, Druva. 


Sector Focus: Nexus focuses on Technology, Consumer Services, and Business Services.


7.   Chiratae Ventures


Chiratae Ventures, formerly recognized as IDG Ventures India, has been leading in technology investments since it was founded in 2006. The company is recognized for its sharp focus on innovation and revolutionary technology startups, providing assistance to numerous successful companies in various industries such as SaaS, Consumer Tech, Health-tech, and Fin-tech.


Notable Investments: FirstCry, Lenskart, Myntra


Investment Focus: Consumer media, Software, Health tech


8.   India Quotient


India Quotient, founded in 2012, is a venture capital firm that focuses on investing in early-stage startups with innovative business models catering to Indian consumers. The company is recognized for supporting new businesses with creative ideas in areas such as fintech, ed-tech, health tech, and consumer goods.


Notable Investments: ShareChat, Sugar Cosmetics, Lendingkart, and iimjobs.


Investment Focus: India Quotient invests across several sectors, including Fintech, Consumer tech, and SaaS.


9.   Lightspeed Venture Partners


Lightspeed Venture Partners, a multi-stage VC firm, focuses on driving innovation in the Enterprise and Consumer sectors by supporting disruptive trends and startups. With successful investments in companies like OYO, Udaan, and Yellow Messenger, Lightspeed Venture Partners strives to accelerate groundbreaking innovations and trends in the market.


10.  WestBridge Capital


WestBridge Capital is an established investment company that specializes in investing in India. Their main objective is to collaborate with mid-sized companies in India that show great potential for long-term success. WestBridge Capital is dedicated to providing financial support to Indian entrepreneurs with a clear vision and is committed to forming lasting partnerships, recognizing that building resilient businesses takes time and dedication.


Notable investments: WestBridge has made over 150 investments in private and public businesses with a significant nexus to India and South Asia. Their portfolio includes companies like: Dealshare, Meesho, Duplocloud.


Investment Focus: Retail & Manufactured goods, enterprise solutions, Financial services, E-commerce.

Upcoming VC Firms


Planify, a well-known financial institution committed to delivering innovative solutions to investors, introduced the Planify VentureX - AIF Fund, a dynamic venture capital fund specifically designed to uncover and invest in the most promising hidden gems- Startups, Unicorns, SMES,  within emerging markets.


This unique fund offers investors the chance to support small and medium enterprises (SMEs) while expanding their investment portfolios. By tapping into various industries and emerging markets, the fund aims to unlock hidden potential and deliver attractive returns to investors.


The VentureX AIF Fund by Planify also provides investors with a fixed allocation of shares in SME IPOs, allowing them to participate in early-stage deals with ease. With a minimum investment of just Rs. 25 Lakhs, investors can kickstart their investment journey through this exceptional opportunity provided by Planify.


Investment Focus: Planify Venture X AIF fund offers access to exclusive investment opportunities, including startups, Unicorns, pre-IPOs, and SMEs.


Notable Investments: Urban Tots, VCI Chemicals, Experiential Etc,  Proxgy.  


Conclusion


Venture capital  in India is a dynamic and essential component of the startup landscape, driving innovation and economic growth. Venture capital firms raise funds from institutional investors, high-net-worth individuals, and other sources. VC firms charge management fees (typically 2% of committed capital) during the fund's life.  As we look ahead, the evolution of VC in India will undoubtedly be a key factor in the country's journey towards becoming a global innovation hub.


















Category: Investments, Venture Capital, Startup Ecosystem

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