Venture Capital Firm Bessemer Collects $350 Million For Second India-Centric Fund

Guwahati: Bessemer Venture Partners, an initial supporter of Swiggy (SWIG.NS), has announced raising $350 million for a fund centred on India. The fund will target investments in AI-driven companies, fintech, and direct-to-consumer brands, among others, according to a statement released by the company on Wednesday. 

A Reuters report reveals that a venture capital firm in the United States announced it will dedicate this fund starting in mid-2025 to keep investing in emerging Indian companies. The company has allocated 80 per cent of its investments in the country to early-stage startups over the past five years.

In 2021, Bessemer Venture secured $220 million for its inaugural India fund, allocating investments to startups like Boldfit, Pepper Content, Shopdeck, and Zopper. Vishal Gupta, a partner at Bessemer Venture, stated that the emphasis is on “recognizing and investing in founders who are leading innovation, addressing intricate challenges, and creating market-defining enterprises.” 

Bessemer Venture, which established its India office in Bengaluru almost twenty years ago, has a portfolio consisting of over 80 companies in the nation, including Swiggy, Ola, BigBasket, and Perfios. Worldwide, it oversees assets valued at $18 billion, encompassing investments in firms like Pinterest, Shopify, and LinkedIn.

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The announcement follows Accel's earlier declaration of its eighth India fund amounting to $650 million this year and Stellaris Venture Partners' wrapping up a $300 million fund at the end of last year. In 2024, the fundraising efforts of startups in India were muted, indicating a restricted supply of capital and a cautious stance among investors. Total fundraising decreased to $2.7 billion last year from $4 billion in 2023, and instances of firms raising over $100 million have also declined, reducing the average ticket size of venture capital investments, as stated in a report by Bain and IVCA.