General Catalyst considers acquiring Venture Highway to strengthen its India focus

• ByStartupStory     |    January 20, 2024

US-based General Catalyst, a significant investor in the region, is reportedly in discussions to acquire Venture Highway, an early-stage venture capital (VC) firm in India, according to three sources familiar with the matter. The talks are in the preliminary stages, and details may evolve closer to finalization. If not Venture Highway, General Catalyst might explore another VC firm in India, aiming to deepen its presence in the world’s third-largest startup ecosystem, an anonymous source revealed.

Months after Samir Sood, co-founder of Venture Highway, stepped down as a partner, there are considerations for potential acquisition. Venture Highway, known for supporting prominent startups like Meesho, Cred, MPL, and Sharechat, is reportedly the focus of General Catalyst’s interest in expanding its foothold in India.

Regarding the potential acquisition, it’s noted, “If the talks go through, Venture Highway will operate as an investing arm of General Catalyst in India and continue to look at early-stage deals in India.” This move deviates from the traditional exit strategy, and Venture Highway, if acquired, will maintain its role as an investment entity within General Catalyst.

Venture Highway, which recently sold some stake in Meesho to WestBridge, is recognized for its strategic investments, typically not exceeding $3 million during the early stages of a company’s development.

General Catalyst has a history of acquiring country-specific VC firms, as seen with the inclusion of Berlin-based La Famiglia in October 2023. The move aligns with General Catalyst’s increased focus on India, as the firm announced plans to invest $100 million in Indian startups last year. Notably, on January 18, General Catalyst led a $2.75 million funding round for Jeh Aerospace, demonstrating its ongoing commitment to the Indian market.

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