The Hindu Business Line : Lightspeed invests in 2 Net firms

US-based Lightspeed Venture Partners has invested $29.5 million in two Internet firms with operations in Bangalore. The company has invested $22.5 million in Mercantila, an online retail venture, and $7 million in TutorVista, an online tutoring and test preparation company.

"We are further scouting for Indian entrepreneurial ventures which could be candidates for early and growth stage equity investments," said Mr Ravi Mhatre, General Partner, Lightspeed Venture Partners. The company has picked up between 20-30 per cent stake by investing in each of these firms.

Lightspeed is currently in talks with 2-3 other firms, which are focussed on the Indian market. "We may conclude some of these deals in the next three to six months," he said.

Lighstspeed manages $1.3 billion and its partners have invested in more than 100 technology companies over the past two decades. At least 10 per cent of its total funds under management are likely to be invested in India in the next few years, Mr Mhatre said.

VC financing wave

India would be at the forefront of "venture capital financing wave'', with projects managing to attract multi-million dollar investments in near future. Internet companies across a spectrum of sectors, including retail and education, are in the key focus set of global funds, he said.

Mercantila Managing Director Mr R. Balakrishnan said the company would utilise the funds to expand its operations in the US and India. Mercantila, dubbed as the next Amazon, plans to enhance its presence in the US and Canada and add over 100 employees to its existing team of around 100 people at its Bangalore operations.

TutorVista Founder and Chairman Mr Krishnan Ganesh said the funding would help his firm to continue its rapid growth in the US and UK markets.

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