Doubling Down on Early-Stage Bets and Expanding into Southeast Asia
As one of the most successful venture funds in the world’s second-largest internet market, Lightspeed India Partners is looking to raise over $500 million for its fourth fund. This significant investment will enable the firm to double down on early-stage bets and expand its focus to the Southeast Asian region.
Growing Interest and Competition
The firm has received inbound interest to raise over $1 billion, but it is likely to close the fund at slightly over $500 million. The ongoing deliberations for the new India fund are part of the global group Lightspeed Venture Partners’ push to raise about $6 billion for a number of its funds.
No Major Changes in Investment Strategy
The firm plans to continue backing early-stage bets in various sectors with the new fund and also expand its focus on the Southeast Asian region. Moreover, it will aggressively explore opportunities in web3.
India’s Growing Startup Ecosystem
The larger corpus will come in handy as the number of startups and the median amount of capital they raise in seed and Series A financing rounds have surged in the country in recent years. Indian startups raised a record $39 billion last year, nearly three times from the previous best of $14.6 billion in 2019.
Global Peers Ramping Up Investments
SoftBank, Alpha Wave Global, and Tiger Global have ramped up their investments in India last year. SoftBank alone invested more than $3 billion in Indian startups last year and plans to invest up to $10 billion this year. Other funds like Insight Partners and Bessemer have become more active in the country in recent quarters.
Recent Fund Raisings
The deliberations for the new fund come weeks after Accel unveiled its sixth India fund, at $650 million. Sequoia Capital India is also looking to raise a large fund, as reported by The CapTable earlier.
About Lightspeed India Partners
Lightspeed India Partners has been operating in India for over a decade and has unveiled several successful investments, including edtech giant Byju’s, budget hotel chain Oyo, e-commerce Udaan, social media app ShareChat, HR tech DarwinBox, jobs platform Apna, and Indonesia’s e-commerce Ula.
Global Reach of Lightspeed Venture Partners
As part of the global group Lightspeed Venture Partners, the India fund is expected to close within the next three to four months. The firm raised $4 billion for several of its funds two years ago. At $500 million or more, Lightspeed India Partners’ fourth fund will be its largest to date.
Implications and Opportunities
The increased investment corpus will come in handy as startups continue to innovate and grow in the Indian market. With a larger pool of capital, Lightspeed India Partners can continue to back early-stage bets and expand its focus on the Southeast Asian region, creating new opportunities for entrepreneurs and investors alike.
Recent Developments in Indian Startup Ecosystem
Indian startups have seen significant growth in recent years, with a record $39 billion raised last year. The median amount of capital raised in seed and Series A financing rounds has also surged. Other global funds have taken notice and are ramping up their investments in the country.
Global Fund Raisings
The Indian fund is part of Lightspeed Venture Partners’ larger efforts to raise about $6 billion for several of its funds. Global peers like SoftBank, Alpha Wave Global, and Tiger Global are also raising significant amounts for their funds.
Conclusion
Lightspeed India Partners’ fourth fund will be its largest to date, with a corpus of over $500 million. The firm plans to continue backing early-stage bets in various sectors and expand its focus on the Southeast Asian region, creating new opportunities for entrepreneurs and investors alike.
