Nexus Ventures New $700M Fund to Back Exceptional AI, SaaS, Fintech Startups

Nexus Ventures , one of India’s earliest homegrown VC firms to invest in US and India-based startups, has announced the closure of its seventh fund, Nexus Ventures VII, raising $700 million. The fund will be used to invest in Indian and US-based startups, focusing on sectors such as artificial intelligence (AI), software-as-a-service (SaaS), fintech, and commerce.

“There has been no better time for technology innovation. The pandemic has accelerated digital adoption worldwide across enterprises and consumers. Remote workforces have enabled startups to flourish by leveraging talent independent of geography. The recent breakthroughs in AI are enabling technologies to disrupt every sector faster than ever before,” the VC said in a blog post.

Nexus Ventures has backed close to 200 startups in India and the US to date, with more than 100 startups in India alone. The VC has six publicly-listed companies on its portfolio, including Zomato, Delhivery and MapmyIndia. The company also counts eight unicorns in its portfolio, having largely participated in Seed and Series A funding rounds of startups, while backing enterprise applications and consumer internet companies.

Founded in 2006, by former entrepreneurs Suvir Sujan, Sandeep Singhal and Naren Gupta, Nexus Ventures Partners is one of India’s leading venture capital firms. With the latest fund, the company would have total assets under management of $2 billion.

“India is emerging as a key innovation and talent hub for global companies driving AI and software revolution. India is also among the fastest-growing economies on the planet, with accelerating digital consumption powered by best-in-class mobile data networks and advanced payments infrastructure,” the Nexus Ventures said.

Nexus ventures to back exceptional entrepreneurs in India and the US

We are pleased to announce the closing of Nexus Ventures VII, a $700 million venture capital fund to back exceptional entrepreneurs in India and the US, building disruptive companies across AI, SaaS, Fintech, and Commerce. Nexus VII is privileged to have the support of world-class limited partners, majority of whom have been with us since the early days – the company said in their blog

Nexus Ventures Partners’ new fund comes at a time when a lot of VC firms have raised large India-dedicated funds, even as funding to the country’s startup ecosystem has fallen significantly in the recent past. Private equity and venture capital investments fell 77% in February from a year earlier, after hitting a five-year low in January.

According to a report by Moneycontrol, venture capital firms and their limited partners raised $5.9 billion for India-dedicated funds in 2020, the highest in at least five years. However, the funding to India’s startup ecosystem, which is currently the world’s third-largest, has fallen significantly in the recent past. The pandemic has made investors more cautious, leading them to focus on companies that have a clear path to profitability, and are resilient to economic shocks.

However, Nexus Ventures Partners seems bullish about the Indian startup ecosystem, stating that the country is a key innovation and talent hub for global companies driving AI and software revolution. It has backed unicorns such as Unacademy, Postman and Delhivery, and believes that with one of the largest developer bases in the world, India can play a significant role in the digital revolution.

“The pandemic has accelerated the adoption of digital technologies across sectors, and the growth of the startup ecosystem in India has been impressive. Nexus Venture Partners’ new fund is a positive sign for the Indian startup ecosystem, as it demonstrates that there is still a lot of investor interest in the country,” said Sanjeev Krishan, partner and leader of private equity at PwC India.

Krishan added that while the pandemic has led to a slowdown in funding to the Indian startup ecosystem, the long-term prospects for the sector remain strong, given the country’s large consumer base, a growing middle class, and increasing digital adoption. He believes that sectors such as edtech, healthtech, and fintech will continue to attract investor interest in the future.

Nexus Ventures Partners‘ new fund is the second-largest fund raised by an Indian VC firm after Sequoia Capital India raised $2.85 billion to invest in India.

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