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OYO, Byju's investor Lightspeed India closes its third fund with $275 million

OYO, Byju's investor Lightspeed India closes its third fund with $275 million
Business3 min read
  • The India focussed fund which has been active for 13 years now, has so far invested $750 million into Indian companies.
  • Some of its best bets include unicorn companies like OYO, Byju’s, and Udaan.
  • Lightspeed’s fund closing comes right after Sequoia India closed a $1.35 billion for two new funds.
Lightspeed India has closed its third fund – Lightspeed India Partners III – for $275 million. The fund, which has been investing in India for 13 years now, has so far invested $750 million into Indian companies, including unicorn startups.

Lightspeed’s biggest bets in India

OYO

Byju’s

Udaan

Sharechat

Innovaccer


“More than 80% of its investments have been committed to firms at seed or series A stages. Lightspeed will continue to focus on early stages of innovation, and work with founders to support them through their growth lifecycle – including the growth capital pool of over $3 Billion raised recently in its global funds,” said the company.

The crisis will give way to opportunities

Venture Capital funds in India seem to be of the strong belief that the crisis we are in with the coronavirus pandemic is going to make way for some big companies emerging out of it.

With the money in the bank, Lightspeed is now looking for ‘bold founders’ as it believes that the coronavirus crisis also means that now is “when the best entrepreneurs and companies of the future will emerge”.

Lightspeed India’s fund raising

2015

$135 million

2018

$175 million

2020

$275 million


Lightspeed’s fund closing comes right after Sequoia India closed a $1.35 billion for two new funds: a $525M venture fund and a $825M growth fund. And Sequoia India’s managing director Shailendra J Singh believes that ironically enough, the Covid pandemic has already catalyzed a massive change in almost every startup’s trajectory. We need to build on this Covid-induced state of high performance, stick to first principles, and remain relentless in our pursuit of sustainably successful companies,” he had said in a note.

Of similar belief is also Vani Kola, Managing director of Kalaari Capital, who had told Business Insider in an earlier chat that the times of crisis will also bring with it a new set of opportunities. “During every crisis, entrepreneurs connect the dots in a way that you and I don’t see. Newer solutions will be created that we are not even foreseeing today. In every industry, there’s going to be a different way we think about that sector. Vernacular companies too might come out with new solutions. Next-gen companies and leaders will emerge out of this crisis,” she said.

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