In an effort to increase its investments in local startups, Matrix Partners India will raise $450 million as part of its fourth fund.
The VC firm announced the fundraising at a time when the Indian startup ecosystem is seeing a slowdown in funding inflow, which is likely to get more pronounced in the coming months. However, the fresh capital raised by these leading VC firms also sends positive signals to Indian startups.
Matrix Partners India made this disclosure, through regulatory filings with the US SEC (Securities Exchange Commission), Its third fund, which was closed in 2019, was $300 million in size.
Matrix Partners India joins other leading VC firms including Sequoia Capital, Accel, and Elevation Capital that have launched India-focused funds. Sequoia had recently announced a $2.85 billion fund for India and South East Asia geographies, with $2 billion devoted to the South Asian country.
The VC firm was founded in 2006 and makes investments in a range of industries, including fintech, business, B2B, and consumer technology, among others.
Matrix Partners has made over 100 investments in India
According to data on its website, Matrix Partners India has made more than 100 investments in India and currently manages more than $1 billion. Ola, Razorpay, Ofbusiness, and other prominent brands are among its portfolio.
According to an earlier report by The CapTable, all the major India-focused VC firms are looking at increasing the size of their funds. It noted that in January 2022, there were 93 funds looking at a target size of $8.9 billion as compared to 81 such funds with a target size of $7.8 billion in January 2021.
