Sequoia Capital is poised to make its inaugural investment in India and the broader Asia-Pacific region since parting ways with previous partners, according to four individuals familiar with the matter.
A global leading private equity firm is reportedly engaged in advanced discussions to recapitalize a Bengaluru-headquartered cross-border funds startup, according to unnamed sources who wished to remain confidential due to the ongoing and sensitive nature of the talks.
If the deal comes to fruition, it would mark the agency’s first transaction in over a year. The previous Sequoia unit was subsequently rebranded as Peak XV Companions.
Sequoia, a prominent venture capital firm, has severed ties with its highly successful China-focused fund, led by renowned investor Neil Shen, as escalating geopolitical tensions between the US and China fuel concerns about investment risk. Hong Shan, previously known as the China unit, has undergone a rebranding effort.
The three corporations are increasingly encroaching on one another’s turf.
According to a recent report by FT, HongShan is facing difficulties in deploying its $9 billion corpus due to various challenges. Peak XV Companions has meanwhile established a staff presence in the United States. According to separate sources privy to the company’s plans, the firm is poised to invest funds in U.S.-based startups. The agency made a significant investment in an Australian startup last year.
Sequoia’s head, Roelof Botha, stated at the recent Fortune conference that their teams in both India and China have built remarkable organizations. “While emphasizing the significance of distinguishing ourselves from Indian and Chinese models, Botha underscored that such pivotal decisions – typically made on an annual basis – can have far-reaching consequences for the company.” The fragmentation of our organization is an irreversible decision that cannot be reversed or retracted in the future.
Sequoia’s UK team, which is closely integrated with its US counterpart, is reportedly considering leading a £22-25 million ($30-32 million) investment round in Vance, according to several sources.
Vance, backed by prominent investors including Y Combinator and Hummingbird, offers a financial services app catering specifically to Indian expatriates. The app enables users to send cash directly to family members’ and friends’ households in India, as well as invest in Indian stocks and mutual funds.
The agency processes nearly $1 billion annually, according to one key source.
Sequoia and Vance remained silent when approached for comment on Friday.
