The two funds will be a $525 million venture fund and a $825 million growth fund.

Sequoia unveils two new funds to invest 135 billion in India Southeast Asia
Money Funding Tuesday, July 07, 2020 - 18:12

Sequoia has committed $1.35 billion to two new funds for India and Southeast Asia, Managing Director Shailendra Singh announced. The two funds will be a $525 million venture fund and a $825 million growth fund.

With this, Sequoia India will now operate a seed fund, as well as venture and growth funds in India. This structure “allows Sequoia to remain a relevant partner for founders at all stages of their journey. The three Sequoia India funds will continue to invest across India and SEA,” Shailendra Singh said.

Singh said that the combined GDP of India and Southeast Asia is expected to reach $14 trillion by 2030, along with the number of mobile internet users crossing 1.5 billion in the same period.

“While we are excited to have new funds to back exceptional founders in India & SEA, raising funds is not success,” he said. This fundraise now has a responsibility to deliver returns to Sequoia’s Limited Partners, Singh said, a majority of which are non-profits, foundations and charities. 

Sequoia India reportedly made more than 50 investments in 2019, more than any firm in India. 

The VC firm has backed several unicorns in India, and has made multiple investments over the years. In India, it has invested in Byju’s, Unacademy, RazorPay, Khatabook, Bira, Zomato, Mu Sigma, Freshworks, Druva, Practo, Freecharge, etc. It even has a stake in OYO, but sold most of it in 2019 as part of the share buyback, which gave the firm a return of over 20 times on its initial investment. 

Sequoia Capital last raised its sixth fund in 2019, which was a $695 million fund. This was extended by $200 million in 2019. 

Last year, it unveiled Surge, an early stage accelerator and incubator program. 

However, many startups have taken a hit due to the pandemic. Addressing this in his note, Singh said, “We need to build on this Covid-induced state of high performance, stick to first principles, and remain relentless in our pursuit of sustainably successful companies.”

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