VC Firm Sequoia Raises Record $2.85 Billion To Fund Indian Start-Ups, Other Ventures

A total of $2 billion is dedicated to India across two funds, while the remaining $850 million funds is for Southeast Asia, Sequoia said

Sequoia India and Southeast Asia, venture capital firm, has raised $2.85 billion, the highest ever in one tranche by any venture capital fund, to fund start-ups and other ventures in the region, the PTI reported.

According to the company statement, of the funds raised, $2 billion is dedicated to India across two funds, and the remaining $850 million funds is for Southeast Asia. SEC filings and earlier fundraising announcements stated this now takes Sequoia's total committed capital in India and South East Asia to $9 billion over the past 16 years.

"Sequoia India and Sequoia Southeast Asia have collectively raised $2.85 billion across a new set of funds, including India venture and growth funds and a $850 million Southeast Asian fund, the firm's first dedicated fund for that region,” the company said, while adding that this the largest fund raised by any VC firm in the region, it added.

Sequoia has had a robust run in the past few years. It saw nine IPOs of companies it funded and $4 billion of exits in the past 18 months. The company has 36 unicorns in the region, including the likes of Zomato, Unacademy, Pinelabs, Byjus, and Razorpay.

"This fundraise comes at a time when markets are starting to cool after a very long bull run, and is a signal of the firm's deep commitment to the region's start-up ecosystem that continues to show promise," the statement said. "India and Southeast Asia have both grown rapidly in the last decade, thanks to the acceleration of digital adoption and rising consumer incomes." Last year, India emerged as the third-largest start-up ecosystem in the world, after the USA and China. Southeast Asia, meanwhile, is on track to become a $1 lakh crore digital economy by 2030.

"The firm has partnered more than 400 start-ups across multiple sectors, stages and market cycles and has 36 unicorns in its portfolio. Between 2021 and 2022, the company saw nine IPOs, with notable ones like Freshworks and Zomato,” the statement said.

The company said its initiatives in the region contribute to building and supporting the ecosystem in ways that go beyond capital.

Sequoia India will continue to partner the next generation of founders, building enduring companies across seed, Series A, and growth stages with this fundraise. It will also continue to double down on initiatives to collaborate across the ecosystem with founders, governments, co-investors, and partners.