Sequoia India raises $300m for third venture fund

Sequoia Capital has raised $300 million for a third India venture fund. The new fund is the largest dedicated to India venture capital, according to Sequoia managing director Sumir Chadha.

Sequoia Capital has closed its third India-focused venture fund on $300 million (€222 million) to focus on early stage investments across sectors.

Sequoia Capital India was formerly known as Westbridge Capital India, which was launched in 2000 with a $140 million fund. In 2005, Westbridge raised $200 million for its second fund.

Sumir Chadha, a co-founder of Westbridge and a managing director of Sequoia India, told PEO that the latest fund was raised from existing investors. “We didn’t invite new LPs,” he said.

US university endowment funds including Princeton and Duke are among these existing investors, he added, although he declined to elaborate further. He said the fund was the largest raised for venture investments in India.

Last year, Sequoia raised $400 million for growth capital investment opportunities in India. The later-stage fund, a first for Sequoia in the country, also led to the opening of a new office in Mumbai in July. The firm has its main Indian base in Bangalore.

Abhay Pandey has joined Sequoia as an executive director to manage the growth capital fund. Pandey was formerly the head of real estate and infrastructure investment banking at DSP Merrill Lynch, and prior to that, he worked at McKinsey & Co in Mumbai and Johannesburg. Since his arrival, Sequoia has taken on two other former McKinsey consultants, Chadha said.