Lightspeed reaches $135m final close on India fund
US-based Lightspeed Venture Partners has reached a final close on its first India-focused fund at the hard-cap of $135 million.
The vehicle launched at the end of last year and reached its original $100 million target by the time it held its first close in early May.
The new vehicle will follow the same strategy as the firm's global fund, targeting pre-Series A and Series A stage investments in technology start-ups across sectors such as mobile, consumer, e-commerce, media, big data, software-as-a-service, and cloud solutions.
"What is happening here is different from the growth we have seen in other asset classes. There has been a fundamental dislocation in the venture ecosystem and the opportunity set in India," Bejul Somaia, managing director of Lightspeed India Partners Advisors, told AVCJ. "This has been driven by both technology shifts and a massive increase in the quantity and quality of start-ups. This differs from other forms of private equity where the story is more about macroeconomic factors: the government and the economy."
Lightspeed has offices in Silicon Valley, India, Israel, and China, where it has another another country-focused affiliate - Lightspeed China Partners - that is currently investing out of its second China fund, which reached a final close of $260 million in June last year. The VC reached reached a final close on its 10th flagship fund in March of last year, raising $950 million.
Lightspeed's pre-existing India portfolio includes: budget hotel marketplace Oyo Rooms, which raised $25 million in March; social discovery platform Lime Road, which raised a $30 million Series C round the same month; and handicraft marketplace Craftsvilla, which raised $18 million in April.
Investments out of the India fund include: Oku tech, a communication platform for real estate brokers; Town Rush, an on-demand logistics network; Fresh Menu, an on-demand food delivery service; and one other company in the local services space, LocalOye. Another undisclosed deal is also currently in the pipeline.
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