Sequoia adds India fund with another $125 million, to use in follow-on investments

In a second extension for its India IV fund, Silicon Valley venture capital firm Sequoia Capital has raised $125 million to the fund. The investment will take its overall corpus to over $850 million, according to source.

In a filing with US regulator Securities and Exchange Commission (SEC) Sequoia India IV has raised this additional capital last week. The investment will be largely used for follow-on investments in existing portfolio companies which received capital from Fund IV.

Earlier Sequoia Capital, whose investment bets include restaurant discovery and food-delivery portal Zomato besides data sciences firm Mu Sigma, had topped up fund IV by another $200 million. Sequoia Capital India also raised its fifth fund of $930 million in early 2016, which is now making new investments.

Over the past three years, India focused stage investors have raised unprecedented capital from India and China.

But with most investors not being able to clock impressive returns and exits like their US and Chinese peers, sponsors or limited partners in these funds have started to get antsy about the Indian venture capital market.

Sequoia raised a $920-million Fund V for India and south east Asia at the end of 2015. In last decade in India, Sequoia, has managed almost $3 billion in assets and clocking returns on its past investments.

It invested in companies like Zomato, Byju and Oyo Rooms. In this year, Sequoia raised a $180-million secondary stake sale in eight of its portfolio companies from its older funds to Madison Capital.