Byju’s, Oyo-backer Lightspeed gears up to raise 4th India-focused fund
- ByStartupStory | June 25, 2022
Lightspeed, famed for its bets on Byju’s, Oyo Rooms, and ShareChat, has started the process to raise its new India-focused fund. The venture capital firm has started its fourth fund, Lightspeed India Partners IV, LLC, according to a filing with the US Securities and Exchange Commission (SEC).
Lightspeed India’s announcement of the new fund comes amid fears that the ecosystem is entering a deeper funding winter as a result of unstable global cues and widespread startup layoffs seen in recent weeks, even though some startups continue to receive funding and unicorns continue to emerge, albeit at a slower rate than last year.
Lightspeed India is not the only company this year to launch or raise a larger capital during a down market. The process to raise a larger fourth fund of $450 million earlier this month was also started this past week by Matrix Partners India, which has supported unicorns like Ola and Dailyhunt. To continue supporting business owners who make investments in Southeast Asia and India, Sequoia Capital raised $2.85 billion across a number of funds. Accel India, which invested early in companies like Flipkart and Freshworks, raised $650 million for its eighth fund in March. For its fifth India-focused entity, Elevation Capital (previously SAIF Partners) raised $670 million the following month.
Lightspeed has been making investments in India for over 15 years, placing its first bet on the online education firm TutorVista Global Pvt. Ltd. Prior to doubling down and founding its first India-specific investment vehicle with $135 million in 2015, the Silicon Valley-based investor first withdrew assets from its global funds. With the help of its second India-focused investment vehicle, it raised an additional $175 million in 2018. For its third fund, the venture capital firm raised $275 million (Rs 2052 crore) in 2020.
Lightspeed India established a dedicated growth team in February, headed by Aditya sharma, who joined from private equity firm TA Associates last year. In a recent move, Lightspeed India later in April also promoted three of its senior executives to the position of partner to strengthen its early-stage investment advisory team.
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