Bessemer Venture Partners, an early investor in Indian unicorns such as Swiggy, has raised $350 million for its second India-dedicated fund, eyeing bets on AI-enabled ventures, fintechs, and direct-to-consumer brands. The firm disclosed this achievement on Wednesday, declaring the fund would start deploying capital in mid-2025 to back early-stage Indian startups.

This latest fund comes after Bessemer's $220 million first India fund in 2021, which invested in startups such as Boldfit, Pepper Content, Shopdeck, and Zopper. In the last five years, 80% of Bessemer's investments in India have been in early-stage, young companies, further cementing its focus on developing innovation.

Vishal Gupta, a Bessemer partner, highlighted their passion for founders to innovate and overcome difficult problems in order to create market-leading companies. The company, which opened its Bengaluru office almost two decades ago, today has more than 80 Indian companies as part of its portfolio, which include Swiggy, Ola, BigBasket, and Perfios.

Internationally, Bessemer oversees $18 billion under management with interests in key international leaders such as Pinterest, Shopify, and LinkedIn. The move comes on the heels of Accel's $650 million India fund earlier this year and Stellaris Venture Partners' $300 million fund closure in late 2024.

In spite of a muted funding environment, with Indian startup fundraising declining to $2.7 billion in 2024 from $4 billion in 2023, the move by Bessemer indicates optimism in the nation's startup ecosystem. The new capital infusion is set to drive the next wave of growth and innovation in India's vibrant tech and consumer industries.