Lightspeed secured its second round of funding of $175 million which would be used to invest in around 25 to 30 Indian startups. Startups which are in the early stage and looking for deals at the Series B and C round of funding.
Lightspeed India Partners Advisors LLP, a venture capital firm has raised a bigger round of funding than its previous round. The $175 million would be used to invest in startups in consumer internet, software and other sectors. Lightspeed is based out of the US and has been operating in India for the last 12 years but the first dedicated fund was launched in India back in 2015. From its first round of funding of $135 million, the company made about 20 investments which included Byju’s, an edutech firm, Sharechat, a messaging application and Udaan, a marketplace for businesses.
Bejul Somaia and Dev Khare, the partners at Lightspeed India, in an interview said that they would invest in about 25-30 startups and are looking for some opportunistic deals at the early rounds of funding.
Dev Khare stated “The strategy for the second fund will be very similar to fund one…..We will make a proportionately higher number of investments as the fund size is larger and we like making a relatively concentrated set of investments because it allows us to spend more time with our portfolio companies and help them with building leadership teams and company culture, making connections within our network and generally be a sounding board for founders.”
Bejul Somaia added “LP interest in the second fund is a reflection of an increasingly diverse opportunity set in India and five years ago, there were mostly consumer e-commerce startups….Now there is a wide array of opportunities including content and media, B2B marketplaces, B2B software, fintech and others and we will continue to invest in all these sectors as well as explore newer areas where the impact of technology will be significant.”
Akshay Bhushan, Vaibhav Agarwal, and Harsha Kumar are the three other partners in Lightspeed India. Harsha Kumar is one of the few funds in India that has a woman in the senior ranks and in August Hemant Mohapatra would be added as the 6th partner to the company.