In its previous batch, Sequoia Surge had a dozen startups from India. The latest batch has 23 companies spread across India, southeast Asia and Hong Kong, which have raised $55 million in total from Surge and other co-investors.
Surge typically invests $1-2 million in each startup, while other investors also put in funds. DSG Consumer Partners, Nexus Venture Partners, Y Combinator, WaterBridge Ventures, Accel and India Quotient are some of the co-investors in this round.
Sequoia’s Surge has made early-stage investment space very competitive for Indian funds such as Blume Ventures, India Quotient and Orios Venture Partners. Silicon Valley-based accelerator Y Combinator is also doubling down on India as one of its key markets outside the US, with a record number of startups from India in each of its recent batches.
Surge’s fifth batch is also its largest cohort since it started in 2019. The latest batch also has 10 women founders. Of the 23 companies, around 13 are into fintech, payments, communications, logistics and software-as-a-service (SaaS).
ApnaKlub, an agent-led B2B wholesale platform for FMCG goods; Mailmodo, an email marketing platform; and Belora, a make-up brand, are some of the Indian startups in the latest cohort.
“At this inflection point of global regrowth, we are excited to be part of the journey of our founders and their companies, many of which we believe will grow into large, enduring businesses,” said Rajan Anandan, MD, Surge and Sequoia India.
ET reported earlier this month that seed-stage funds such as Orios Venture Partners
are going to hit the markets to raise new funds of $80-100 million, while India Quotient
has made the first close of its $80 million fund to take new bets. Orios and India Quotient have closed opportunity funds of $30 million and $40 million, respectively. Blume Ventures is also raising a new fund of about $120-150 million.