Bessemer Venture Partners secures India-focused fund of $220 million

Bessemer Venture Partners, one of the region's oldest early stage investors, has secured a $220 million India focused fund for the first time. 15 years ago, the firm began investing in India. The shift in strategy comes amid an unusual inflow of capital into Indian new economy companies this year from risk investors willing to make greater and riskier bets. “The fund will largely invest in early stage startups, supporting them from seed to growth stage rounds” a source added.

The fund will invest in firms from a variety of industries, including consumer internet and cloud software, as well as marketplaces, digital health, social commerce, vertical and global software-as-a-service. PharmEasy, BigBasket, Swiggy, Urban Company and Perfios are among the firms that have funded PharmEasy, BigBasket, Swiggy, Urban Company and Perfios.

As we look at where innovation is stemming worldwide, it's clear that the India startup ecosystem is more vibrant than ever

"This India dedicated fund will look at taking new bets and we will continue to support our existing portfolio companies from the global fund that we have so far been investing from," says Vishal Gupta, Partner & Managing Director at the Bengaluru office of Bessemer Venture Partners.

According to Vishal, the firm has always had a global investment approach and India has long been a key geography. "This new capital allows us to go deeper in the market. The dedicated fund exemplifies our confidence in the massive growth opportunities within India. We are excited to not only continue supporting the many companies with whom we already partner, but to expand our investments to even more innovative entrepreneurs who are shaping the future," he said.

"As we look at where innovation is stemming worldwide, it's clear that the India startup ecosystem is more vibrant than ever. We see a sizable market of India based companies that will disrupt global markets," said Bob Goodman, Partner in Bessemer's New York office.

Also, Nithin Kaimal has been named Chief Operating Officer of Bessemer's Bengaluru office, where he will handle operations, portfolio services, and fund governance, in conjunction with the new fund. Kaimal comes to Bessemer after founding and leading VixCap, an investment management firm.

"India represents a trillion dollar digital opportunity across consumer internet and SaaS as we predict 500 million more people will engage and transact online in the next ten years. Through this new fund, we will continue to partner with the best entrepreneurs who are looking to build for this opportunity within India and beyond," said Anant Vidur Puri, Partner at Bessemer Venture Partners.

It now has a portfolio of five startups worth more than $1 billion, including Livspace and MyGlamm. Home First Finance, IEX, and are among the seven IPOs that the business has completed in India. Pinterest, Shopify, Twilio, Yelp, LinkedIn, PagerDuty, DocuSign, Wix, Fiverr, and Toast are among Bessemer's global portfolio companies, with $9 billion in capital under management.