American venture capital firm, Bessemer Venture Partners has for the first time raised an India-focused fund worth $220 million.
The company, which had started investing in India 15 years ago, is believed to have changed its strategy due to unprecedented flow of liquidity in new-age Indian economy companies this year.
A senior company official said that the primary focus of the fund will be on early-stage investments by backing companies in their seed to growth-stage funding rounds.
The fund has been backed entirely by global investors and will be focusing on companies across consumer internet and cloud software sectors, such as marketplaces, social commerce, digital health, and vertical as well as global software-as-a-service.
Bessemer Venture Capital has up until now backed Swiggy, BigBasket, PharmEasy, Perfios, and Urban Company with its global pool of capital.
Vishal Gupta, Bessemer’s Bengaluru office MD and Partner, has stated that with the India-dedicated fund, the firm will be on the lookout for new investment opportunities while continuing to support the existing portfolio companies that were backed by its global fund.
Mr. Gupta adds that as per the firm’s global investment approach, India has always been a key region and that the fund is a representation of the company’s belief in India’s growth opportunities.
The firm has also appointed Nithin Kaimal, co-founder and director of VixCap, as the chief operating officer in its Bengaluru office with the new fund, where he will be overseeing operations, portfolio services as well as fund governance.
Bessemer Venture Capital has five Indian companies within its portfolio, including MyGlamm and Livspace, with a valuation of more than $1 billion, and has also realized 7 IPOs within the country including Matrimony.com, IEX, and Home First Finance.
Anant Vidur Puri, a partner at the Bengaluru office, predicts that 500 million more people will be online and making transactions in the next ten years, as India exemplifies a trillion-dollar digital opportunity across consumer internet as well as in software-as-a-service.