US hedge fund Steadview Capital is looking to invest up to $500 Mn In Indian Startups Over The Next Two Years with individual investments ranging from $20 Mn – $40 Mn per deal. Financial daily Mint Reported.
Steadview Capital was founded in 2009 and is currently led by Ravi Mehta. It has nearly $2.5 Bn assets under management. The firm was testing the water in the Indian market for the last few years after its entry in 2014. Steadview‘s first investment was $21 Mn in a furniture rental startup Urban Ladder.
The very next year Steadview Capital invested millions across companies such as e-commerce player Flipkart (now acquired by Walmart), cab-hailing player Ola, online insurance aggregator PolicyBazaar, music streaming platform Saavn and classified platform Quikr among others.
Last year, it invested in eyewear retail startup Lenskart, home services firm UrbanClap, and INDWealth, a wealth management platform started by former Ibibo founder Ashish Kashyap
This year, Steadview has bet on business-to-business fresh supply chain startup Ninjacart, online education startup Unacademy and online fantasy gaming platform Dream11, where its investment helped the startup to unicorn status.
Tech startup fundings in India has registered a booming growth in the last few years, with a total investment inflow of $1.4 Bn at growth stage recorded a historical high in its quarterly funding amount, In the case of the growth stage startups, the funding amount of $1.4 Bn recorded in the first quarter of 2019 is 68% higher than the $821 Mn recorded in Q4 2018. From a Y-o-Y perspective, that figure is a massive 141% increase from the $574 Mn recorded in Q1 2018.
Governments ambitious goal of transforming India Into a Startup Hub and viz a viz producing entrepreneurs, generating employment and attracting foreign investment, has fared well so far. With a consistent push in this direction, along with complementing policies will further create an optimum environment for other startups to bloom and sustained growth for existing companies.