Lightspeed Venture Partners Closes Second India Fund At $175 Million

One of the largest silicon valley company Lightspeed Venture Partners, which is highly known for backing companies like Snap and App-Dynamics, has closed its second India fund with a corpus of $175 million as it looks back the new set of early-stage technology startups.

This brings the total capital under management in India to be amounted $310 million as the firm looks to rack up its bets in areas like fintech, media and content, b2b ecommerce, software and logistics department.

“Our strategy remains the same — seed and Series-A deals,” said Dev Khare, a partner at Lightspeed India Partners Advisors. “The reason for this is new spaces have opened up and there is an opportunity to continue to go in early and help startups build their management teams and guide them through the strategy that will fit the India market, as opposed to the ones borrowed from the US or China markets.” 

In India, Lightspeed has been an early backer of some of the top startup like budget hotel player OYO, Byju’s, education learning app and vernacular language social network ShareChat which have already broken out. The venture also cuts larger cheques with its US fund, as it led follow-on funding round of $50 million in b2b ecommerce player Udaan earlier this year after leading the first round in the year 2016.

“We see companies doing a much better job of tracking through highfrequency engagement and positive unit economics to grow their businesses,” said Bejul Somaia, partner at Lightspeed India Partners Advisors. “We’ve got companies like by Byjus that are profitable and growing.”

This news comes into the report after the report said that Lightspeed, with among a slew of VC firms like Sequoia Capital India, Nexus Venture Partners, Kalaari Capital, Matrix Partners India and Blume Ventures, are raising some of the new funds.  While experts have been of the belief that limited partners (LPs) that invest in VC funds are increasingly seeking cash returns and not mere valuation markups, making it difficult for funds to raise money.

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