The limited partners in this new fund are majorly from non-profits, foundations, and charities. Sequoia had closed its sixth fund at $695 million to invest in early and growth-stage companies in India and South-East Asia. Sequoia is one the leading VC investment house in India with unicorns such as BYJU'S, OYO, Freshworks, and Ola in its portfolio, and also a sizeable number of soonicorns in its list. This fund raise comes at a time when venture capital investments in the startup ecosystem continue to decline due to the COVID-19 pandemic. However, Shailendra remained very optimistic about the opportunities across India and South-East Asia.
Shailendra also highlighted the hard truths that the COVID-19 pandemic has brought to the startup ecosystem where the period of exuberance witnessed an inflow of a large amount of capital, while the down cycles led to cost-cutting and negative sentiment. He further highlighted that during the period of intense competition, startups struggled to grow rapidly with good unit economics and often posted very high losses. Besides, it also prevented large profitable technology businesses to emerged from the region. “We are at a fork in the road, and everyone has a choice to make. From our vantage point, the future of our region will be shaped by those few founders who are resolutely committed to building enduring companies with unshakable foundations. It will take a handful of exceptional founders to show us the way, to shine the light for others to follow,” Shailendra said.
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