In order to expand its consumer internet portfolio and tap the under-served market, Venture firm Matrix Partners India has announced that it will increase its investments in Delhi-based start-ups.
Delhi office will be their third abode after Mumbai in 2006 and Bengaluru in May 2015. The firm will also move three of its investors in the National Capital’s office.
Currently, 50% of Matrix’s portfolio companies are based in Bengaluru, while 15-20% are in the national capital region (NCR). Matrix will launch its Delhi office this week and has moved three of its investors there.
“Delhi is the capital of the country and also the capital in terms of the number of startups and number of billion-dollar-plus companies in the technology ecosystem,” said Avnish Bajaj, founder, Matrix Partners India.
According to research by Matrix, over 30 percent of all new startups in 2016 across sectors were founded in Delhi-NCR, followed closely by Bengaluru at 19 per cent. Delhi has a larger base of operation-heavy commerce and Internet start-ups. But Bengaluru still leads by far in terms of funded deals, and is the hub for pure tech-related investments.
Delhi-NCR has also overtaken Bengaluru in the total number of new startups as well as in the number of funded startups over the last two years.
Also Read: Tech-based logistics startup Loadshare raises funding from Matrix Partners
Some of India’s top VC firms have presence in the NCR though investors travel frequently to hunt for new investments there. Apart from SAIF Partners and Lightspeed Ventures, most other large funds are based in Bengaluru and Mumbai.
Matrix partners, which backed unicorns such as Ola and Quikr in the past, has been active in Delhi-based startups. Earlier, the VC firm had invested in several startups, which include online shopping platform Limeroad, B2B marketplace OfBusiness, web-based marketing platform Limetray, to name a few.
Matrix Partners India: Website
