If you have been looking forward to start a business in India but have been held back by lack of adequate capital, worry no more. This article hopes to provide answers to your questions. Following sustained economic growth in India in recent years, venture capitalists have gained more prominence than before in India. The reason is simple; everybody would always be confident to invest in a growing economy because they are almost sure of making profits. It is well known that consumer purchasing power increases with the growth of economy. Popular venture capitalists that will quickly fund your business in India are:
Based in Mumbai, the firm started six years ago with just $ 20 Million. The firm chose to focus on seed stage start-ups. Indeed, it is credited for being the pioneer of micro venture capital funds in India. The firm simultaneously invests in numerous small start-ups. The firm has since grown its investment capital but remains a very good option for you if you are looking for funding to start a small or medium size business.
The firm is based in Bengaluru and has over $ 300 million that is dedicated to funding start-ups. Additionally, the firm also invests in other venture capital firms as a limited partner. Currently, the firm has interests in close to 150 companies. In addition to India, the firm also makes seed investments in the United States.
This is a relatively new firm that entered the venture capital market in 2015 with its headquarters in Hyderabad. The firm focuses on the underserved technology firms in India. As of 2016, it had invested in a number of companies including Darwinbox, Hansel, Innerchef and Celes.
Based in Bengaluru, Accel is a local franchise of a California-based firm with the same name. By December 2016, Accel Partners India had raised $ 450 million. The company prefers making seed investment in start-ups. Significantly, Accel was the first venture capital firm to invest in Flipkart, a Bengaluru-based e-commerce firm and is still a significant owner.
While this is a fairly conservative venture capital firm, it is one of the more serious technology investors in India. The firm has made a number of investments and raised $ 150 million which it plans to invest further.
- IDC Ventures India
IDC Ventures India look to invest in high potential technology and technology-enabled businesses. They typically look to invest between $0.5 Mn to $10 Mn at seed, early and expansion stages in technology and technology-enabled ventures. Their targets sectors include consumer media & tech, software, health-tech and fin-tech
Helion Venture Partners is a stage is an Indian-focused venture capital firm, investing in high growth technology powered consumer services and businesses. The firm focuses on technology startups in the early to middle stages. In 2012, Helion was India’s “largest domestic venture capital firm”, according to The Economic Times.
Sequoia Capital India invests in startup seed, early, mid, late, expansion, public and growth stage companies. The firm focuses on technology, healthcare, financial, energy, and consumer. It invests at least $100,000 Mn in seed stage and $1 Mn in early stage companies.
Having discussed the above venture capital firms that operate in India, you are now in a better position to make an informed decision as to the choice of a VC firm to fund your start-up. As you may have noted, some venture capital firms only fund start-ups in a specific area while others may be willing to fund a variety.