Reliance The Silicon Valley-based agency has until date deployed about $750 million in India throughout two devoted funds and its international arm.
The Silicon Valley-based agency, which registered exits of almost $900 million final 12 months from its two high bets – Oyo, and partly from Byju’s, has until date deployed about $750 million in India throughout two devoted funds and its international arm.
Lightspeed’s typical first cheque is $1-$3 million relying on the stage of the enterprise in addition to aggressive dynamics within the aggressive early-stage deal-making market.
Bejul Somaia, companion, Lightspeed Venture Partners informed ET that international Limited Partners (LPs), or sponsors in funds, nonetheless view India as a discretionary asset class. “LPs are still inclined to be selective… that said, there is a broad belief in the digital opportunity in India,” he stated, commenting on the general fundraising course of. The new fund, which can proceed to again early-stage startups, will begin deploying capital within the final quarter of calendar 12 months 2020. Last month, Sequoia Capital India raised $1.35 billion to deploy in India and Southeast Asia. In 2015, Lightspeed raised its first India-dedicated fund of $135 million, adopted by a second fund of $175 million in 2018.
“The size of our fundraises was proportionate to the early-stage opportunity at that time…also, as a global firm…we have several funds to double down our commitment should the opportunity present itself,” Dev Khare, companion, Lightspeed stated. In April, Lightspeed introduced the closing of three new international funds totalling $4.2 billion.
Exits in India
Earlier this month, Lightspeed portfolio firm Byju’s purchased smaller ed-tech startup WhiteHat Jr for $300 million in money. “Most acquisitions in any economy come from local buyers. In the past, there haven’t been many scaled companies that could make these offers. Now, we are seeing companies get to scale in India. Reliance (Industries) could potentially become one of those buyers as well,” Hemant Mohapatra, companion, Lightspeed stated.
The Covid-19 pandemic has compelled companies to chop down on extreme money burn and construct slowly however profitably.
“A lot of companies are structurally and economically stronger now than six months ago. They may be a little smaller but far healthier,” Somaia stated. For younger firms, regulatory curbs about choosing up investments from China, one of many largest backers for Indian companies, coupled with the most important Indian conglomerate Reliance Industries aggressively doubling down on expertise companies, has additionally proved tense.