December 8, 2022

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Sequoia Capital launches funds value $2.85Bn to drive investments in India and SE Asia

Sequoia Capital is seeking to double down on India and SE Asia markets, because it introduced two new funds, totalling to $2.85Bn for these two markets. Sequoia is already probably the most distinguished VC funds in each these startup markets, having backed among the earliest startup success tales in each these areas.

The mixed worth of the 2 funds is $2.85 billion – a $2 billion early-stage, enterprise and development fund for India and an $850 million devoted fund for Southeast Asia – at a time when shares are crashing and startups are warned to be worthwhile.

In a weblog publish, the corporate wrote that these funds signalled its “deep dedication” to the area and the religion its Restricted Companions (LPs) had within the long-term development story of India and Southeast Asia. Up to now 18 months, 9 of Sequoia’s portfolio startups went public, which meant that Sequoia pocketed practically $4 billion in realized and unrealized features on the present market worth.

Going ahead, the corporate stated that it intends to double down on the area on the seed, Sequence A, and development phases, the place it operates a number of applications apart from merely making enterprise and development investments. The brand new funds will proceed to help founders in creating “legendary firms from thought to IPO.”

“Valuations and velocity will transfer with markets. What endures is worth creation when it comes to income development, profitability, and free money circulation rooted in actual innovation, excellence in execution, and a maniacal concentrate on clients. At Sequoia India and Southeast Asia, we intend to double down on our efforts to assist founders construct wholesome firms that may endure,” Sequoia wrote within the weblog publish.

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Whereas Sequoia has launched India funds earlier than, this marks the maiden fund of the corporate that’s devoted to the South-East Asian area. It entered the area by betting on companies like Gojek and Tokopedia, and as we speak, Sequoia India and South-East Asia handle over $9 billion in belongings (mixed) as they invested in over 400 startups throughout the areas (36 of which grew to become unicorns and 13 went public).

The fund launches, although encouraging, additionally come at a time when Sequoia and a few of its largest portfolio firms are beneath intense scrutiny, as a consequence of company governance. BharatPe has been within the information for the general public feud between the founder Ashneer Grover and Sequoia. Zilingo, one other Sequoia portfolio unicorn just lately got here into mild as co-founder Ankiti Bose was fired fairly unceremoniously amid accusations of mis-governance.

Sequoia’s announcement on its fiftieth anniversary and tenth 12 months in SE Asia will undoubtedly deliver reduction to the startups within the areas, particularly at a time when investor curiosity is cooling and startups are struggling to lift funds. Y Combinator and Sequoia itself, have warned of robust occasions at hand, warning that the times of rising in any respect prices are ending.