Bessemer Venture Partners (BVP) has successfully closed its second fund focused on India, raising $350 million to invest in up-and-coming startups. This fund will prioritize investments in artificial intelligence (AI) and fintech software, aligning with the firm’s established, strategy-driven investment approach.
“The two areas that we are most excited about are AI and fintech software,” said Anant Vidur Puri, Partner at Bessemer. “We expect a large part of this fund to be deployed in these sectors.”
In contrast to many funds that target specific investment stages, Bessemer adopts a stage-agnostic strategy. Although the firm has a history of engaging in early-stage investments, it is willing to allocate funds across various growth stages.
“We can write a million-dollar seed cheque, and we can also write a $30 million growth cheque. Given our stage-agnostic nature, we expect to make a healthy number of investments over the coming years,” Puri explained.
With a robust pipeline of potential investments, BVP plans to start deploying capital from this fund in the upcoming quarter.
“The level of entrepreneurship in India has reached a different scale. We have a full pipeline and are excited about how to go about deploying this fund,” Puri added.
BVP maintains stringent investment criteria, aiming to back companies with a clear path to significant growth. “We always want to see that there is an IPO path. Our expectation is that all our investments should be able to cross $100 million in ARR and really scale,” said Puri.
The firm’s commitment to excellence has resulted in significant achievements, with nine companies from its India portfolio already going public.
Even with its strong track record, Bessemer acknowledges that it has missed opportunities. “There are definitely companies like Nykaa and BillDesk that we didn’t invest in, and maybe we should have. There will always be ones we miss, but we use that as motivation to improve our decision-making,” Puri admitted.
Several of Bessemer’s portfolio companies are preparing for IPOs, although Puri noted that market timing remains unpredictable.
Bessemer’s second India fund builds on nearly two decades of investments in the country, with previous successes including BigBasket, Swiggy, and Urban Company. As it begins deploying fresh capital, the firm is set to further shape India’s AI and fintech landscape.
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