Bessemer Venture Partners (BVP) has announced the launch of a $350 million India-focused fund, reaffirming its commitment to the country’s rapidly evolving startup landscape. This marks the firm's second India-dedicated fund, following a $220 million investment vehicle established in 2021.
The fund will primarily target early-stage startups in key growth sectors, including:
- Artificial Intelligence (AI)
- Software-as-a-Service (SaaS)
- Financial technology (fintech)
- Digital health
- Consumer brands
- Cybersecurity
Investment Approach
Bessemer’s funding strategy will focus on providing capital between $5 million and $40 million per startup, with a long-term approach to backing companies from their early days through subsequent growth phases.
"As AI adoption accelerates, we see immense opportunities for innovation, and this fund allows us to back entrepreneurs shaping the next phase of India’s digital economy," said Anant Vidur Puri, Partner at Bessemer Venture Partners.
The firm has a well-established presence in India, with investments in notable startups such as Swiggy, Ola, BigBasket, and Perfios. With an office in Bengaluru for nearly two decades, Bessemer has played a pivotal role in nurturing India's tech ecosystem.
Industry Context
This move comes amid a wave of renewed investment interest in India’s startup ecosystem. Other major funds launched recently include:
- Accel’s $650 million eighth India fund (early 2024)
- Stellaris Venture Partners’ $300 million fund (late 2023)
Despite a decline in total venture fundraising from $4 billion in 2023 to $2.7 billion in 2024, India's startup ecosystem remains attractive for investors betting on AI-driven disruption and digital transformation.
Our Opinion on the News
Bessemer's expansion into India's AI and fintech space signals strong confidence in the region's potential as a global technology hub. By doubling down on early-stage investments, the firm is fostering innovation and providing crucial capital for groundbreaking ideas. This fund is set to catalyze India’s next wave of digital growth, making it an exciting time for startups and investors alike.