Sequoia Capital India Raises $195 Million to Support Indian and Southeast Asian Entrepreneurs

By McKenzie Carpenter Thursday, March 25, 2021

Growing a startup company from scratch is no easy task. It requires an immense amount of time, energy, and resources. It was revealed today that Sequoia Capital India, an investment company, has completed its second seed funding round resulting in $195 million raised.

A businessman holding bags of Indian rupees.

About Sequoia Capital

Sequoia Capital is an American venture capital business that invests in startup companies in various different industries, including energy, financial, healthcare, technology, and mobile apps. Based out of California, the investment company has made nearly 1,500 investments and even acquired FACES Cosmetics for $40 million in 2017. The business invested in large corporations such as Apple, Google, Instagram, LinkedIn, PayPal, Reddit, Zoom, and many more.

The company also runs another venture capital location in India, Sequoia Capital India, that focuses on startup companies in India and Southeast Asia. The venture capital company has made 411 investments in startup companies like Shuttl, Glocal, Pine Labs, Tokopedia, Zomato, and others. Furthermore, the venture capital business acquired Anglia Business Solutions for £6 million ($8.2 million) in 2012.

Today, it was revealed the investment company completed a second seed round of funding. Sequoia Capital India raised $195 million to continue efforts of supporting Indian and Southeast Asian startup companies.

Surge

The new capital raised by the venture capital firm is part of Sequoia Capital, India’s program called, Surge. Launched in 2019, this program provides rapid upscaling for startup companies in the Indian and Southeast Asian regions by investing between $1 million to $2 million and providing workshops, global immersion trips, and support from other startup company founders.

Since Surge’s inception, 69 startup companies in four cohorts have raised a combined $172 million, and 30 of those startups from the first three cohorts have gone on to raise $390 million after completing the Surge program. In addition, CNBC reported that there are 39 startup companies valued at $1 billion or more, achieving unicorn status. Three of those companies gained that status in 2021.

Rajan Anandan, a managing director at Sequoia Capital India and overseer of Surge, said, “In many ways, 2021 is going to herald the beginning of a new era for the Indian start-up ecosystem, where we are going to begin to see sizeable, significant IPOs in our ecosystem.”

This is the second time Sequoia Capital India has raised capital for Surge. The venture capital business initially raised $200 million in 2019 before Surge launched.

Managing Director at the Indian investment business, Shailendra Singh, said, “We set out with an idea to throw everything at helping young founders succeed, which meant giving them sufficient capital so they have a shot, tons of mentorship and hands-on help...After seeing the traction, we are doubling down with a second fund.”

The new funding will help further Surge’s mission of accelerating growth throughout India and Southeast Asia to boost startup companies’ value in the global market.

Anandan said, “Given India’s place in the world, we think that second access, which is being able to build for the world from India, is going to become very, very interesting over the next five or 10 years.”

About the Author


Headshot of McKenzie Carpenter

McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.

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