Sequoia Capital India closes $725m fund

The veteran venture capital firm has closed its second growth fund focused on India, bringing its total India-dedicated assets under management to $1.8bn.

Sequoia Capital, which makes investments in China, India, Israel and the US, has raised $725 million (€491 million) for Sequoia Capital India Growth Fund II, almost double the size of its predecessor fund.

The fund will make late stage, pre-IPO and public market investments in India in a wide range of sectors including technology, retail, financial services and infrastructure companies. It will make investments of between $20 million and $70 million per transaction.

Sequoia is currently investing out of a $350 million venture capital fund and a $400 million growth fund, Sequoia India Growth Fund I. The firm also manages two venture funds totaling about $340 million that were raised by Westbridge Capital India, which merged with Sequoia to form Sequoia Capital India in 2006.

With the close of Growth Fund II, the firm now manages assets of $1.8 billion in India-dedicated funds.

Some of the firm’s investments in the consumer-driven sector include Café Coffee Day, a coffee retail chain; Cotton County, an apparel manufacturer and retailer; and Genesis Colours, which owns five designer labels.

Financial sector investments include SKS Microfinance and Edelweiss Capital, a financial services company.  Other investments have been made in Coastal Projects, a construction services company with a focus on hydropower projects and tunneling; Idea Cellular, a mobile services operator; and GVK Biosciences, which provides research services to pharmaceutical and biotechnology companies.

Sequoia Capital India has an investment team of 12 based out of Bangalore and Mumbai. Globally, the firm manages assets of about $10 billion.