Silicon Valley-based venture capital firm, Lightspeed Venture Partners has closed its second India fund at ₹1,200 crores ($175 million). It is looking to invest in early-stage Indian technology startups to help with their management teams and guiding them in their strategies for the Indian markets.
The new investment brings the total capital under management in India to ₹2,129 crores ($310 million). The investors in this second India fund include limited partners, companies that invest in venture capital firms in the US and East Asia.
Lightspeed Venture Partners is an American venture capital firm that invests in technology-based startups. It was founded by Chris Schaepe, Barry Eggers, Ravi Mhatre, and Peter Nieh in 2000. Lightspeed has been an active investor in the local and overseas market since 2004. It has funded over 300 companies internationally like Snapchat, DoubleClick, AppDynamics, etc. In India, it has backed companies like OYO, hospitality startup, along with Byju’s, an education technology startup.
“We see companies doing a much better job of tracking through high-frequency engagement and positive unit economics to grow their businesses,” said Bejul Somaia, a partner at Lightspeed India Partners Advisors. “We’ve got companies like by Byjus that are profitable and growing.”
It had recently invested in an Indian B2B e-commerce startup, Udaan with a follow-on investment of $50 million after leading the first round in 2016.
This second India fund is expected to invest in around 25 companies in the early stages along with a few growth opportunity companies in series B and Series C stages.
Lightspeed is amongst the venture capital firms that have raised or are raising new funds including, Blume Ventures, Matrix Partners India, Saama Capital, Sequoia Capital, Nexus Venture Partners, Accel Partners. Even though it is getting difficult to raise funds at the time when experts claim that the limited partners that are investing in venture capital funds are constantly seeking cash returns over market valuations, Lightspeed has had quite a steady run.