Key takeaways
- Bessemer Venture Partners launches $350 million fund to invest in Indian startups across multiple sectors.
- Targeted sectors include AI, fintech, digital health, and cybersecurity to capitalize on India's growth.
- Investment strategy will focus on early-stage companies, leveraging insights from Bessemer's research process.
- Growing middle class and digital infrastructure in India drive the fund's establishment and investment potential.
- Bessemer has a strong track record, previously investing in over 80 Indian startups since 20 years ago.
Bessemer Venture Partners has announced a $350 million fund dedicated to early-stage investments in India. This is the firm’s second India-focused fund, which will target startups in AI-enabled services, SaaS, fintech, digital health, consumer brands, and cybersecurity.
Partners Vishal Gupta and Anant Vidur Puri will lead the investment strategy.
The firm cites several factors behind the new fund, including the growth of India’s middle class, expansion of digital infrastructure, and increasing domestic investment.
“India is rapidly moving towards being the world’s third largest economy and a trillion dollar digital opportunity fueled by strong domestic savings, growing mobile and internet penetration, rapidly improving software and AI advancements,” Puri wrote on LinkedIn. He highlighted how this growth is further supported by a strong layer of public technology initiatives such as Aadhaar, UPI, Open Network for Digital Commerce (ONDC), and others.
Bessemer opened its Bengaluru office nearly 20 years ago to focus on India’s technology sector. Since then, it has invested in more than 80 startups in the country. Over the last five years, more than 80% of its India investments have been at Series A or earlier stages.
Its portfolio includes BigBasket, Urban Company, Perfios, and Livspace. Nine of its portfolio companies in India have completed initial public offerings. According to the company, the investment strategy will follow Bessemer’s roadmap research process, aimed at identifying early trends and emerging sectors.
Startups backed by Bessemer’s first India fund include Boldfit, MoveInSync, Pepper Content, ShopDeck, Vetic, and Zopper.
