Bessemer Closes Second India-Focussed Fund At $350 Mn To Boost Play

US-based venture capital firm Bessemer Venture Partners (BVP) has raised $350 million (Rs 3,052.3 Cr) for its second India-focused fund to support early-stage startups.

The firm said that it plans to invest in sectors like AI services, SaaS, fintech, digital health, consumer brands and cybersecurity.

This follows Bessemer's first India-focused fund of $220 million raised in 2021, which supported startups like Boldfit, MoveInSync, Pepper Content, Shopdeck, Vetic and Zopper.

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“The fund was substantially oversubscribed, but we capped it at $350 million. Also, the limited partner base of the fund includes global universities, foundations, sovereign wealth funds, and a bunch of family offices,” said Vishal Gupta, partner and managing director at BVP’s Bengaluru office.

“We would continue to invest across the roadmaps of SaaS, AI, and fintech companies which are building software for the financial system, digital health, consumer brands and cyber security. This is where we are going to deploy most of the capital,” said Gupta.

“As a firm, we believe all four are exciting areas or companies in India. However, top two areas from these four would be companies building verticalised AI applications, and companies building AI-enabled services for different industries,” BVP partner Anant Vidur Puri said.

Puri also said the firm is looking into AI investment opportunities in areas like foundational models, infrastructure, applications, and AI-led services.

Launched last October, the fund plans to invest between $5 million and $40 million in early-stage startups and continue supporting them as they grow.

Since starting operations in India in 2006, BVP has invested in over 80 startups, including BigBasket, PharmEasy, Urban Company, and Livspace. Nine of its portfolio companies, like Swiggy, Indian Energy Exchange and Bharat Matrimony, have gone public.

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