Sequoia Capital India tops list of investors in unicorns

Sequoia Capital India, the Indian arm of the US-based investment company, tops the list of the Hurun India Top Unicorn Investors List, 2020, brought out by the Hurun Research Institute this (Wednesday) morning. Sequoia Capital India has invested in as many as eight Indian unicorns, per this list.

The second position is shared by Japan’s SoftBank and the UK’s Steadview Capital with investments in seven Indian unicorns each. The Hurun India Top Unicorn Investors List 2020 sequels the launch of Hurun India Unicorn List 2020 earlier in the second week of August, says Anas Rahman Junaid, Managing Director and Chief Researcher at Hurun Report India.

First such list from Hurun

The top five unicorn investors are those who have invested in at least five unicorns in India, he explained (see table). “In order to identify the investors, we used regulatory filings and feedback from the VC funds. The list is a compilation of all the investment firms that have invested in three or more India-based unicorns as of August 20, 2020.”

Anas Rahman Junaid also said this is Hurun’s first attempt at showcasing the success stories of investors who have endorsed their trust in unicorns from India. “They play a significant role in accelerating the creation of new wealth in India. Their success goes on to show that Indian HNIs should actively start allocating part of their portfolio towards start-ups,” he added.

The top five unicorn investors are:

Sequoia : The US-based venture capital firm Sequoia Capital made its debut in India in 2006. Till date, it has closed seven funds in India. In July 2020, it announced its intentions to invest $1.35 billion through a venture fund of $525 million and a growth fund of $825 million. Geographically, both these funds will be focussed on making investments in India and South East Asia.

SoftBan k: Japan’s SoftBank has invested in some of the leading unicorns in India. The fund’s leader Masayoshi Son is known for his expertise and vision in placing smart bets on the global unicorns. In 2018, the investment giant gained 60 per cent returns on its $2.5 billion investment in e-commerce company Flipkart. It is considered to be one of the biggest achievements of SoftBank in the Indian market, that too, in a single year.

Steadview Capital : In 2014, the UK-based Steadview Capital made its first investment in Urban Ladder, an online furniture company. A recent disclosure to a news agency by the firm’s founder Ravi Mehta said the fund has invested $2 billion in India. Ravi Mehta of Indian origin founded the investment firm in 2009. The firm focusses on making investments in ventures that are primarily based in Asia.

SAIF Partners : With $3-billion in total assets under management, SAIF Partners largely focusses on investing in early-stage start-ups. The company announced 15 investments in India in 2019. It has already gone on record with its plans to repeat this feat in 2020 as well.

Matrix Partners : Since its establishment in India in 2006, Matrix Partners has invested more than $1 billion in the Indian market. The firm is a subsidiary of Matrix Partners of the US and participates as an early-stage investor in the market. In its third and latest fund, Matrix Partners India raised $300 million.

Nexus Ventures : Shares the fifth position on the unicorn list. Nexus is an investment firm that focusses mainly on investing in the US and India. The fund follows a pattern of investing early on in the companies. It commenced its operations in 2006, and was founded by Naren Gupta, Sandip Singhal and Suvir Sujan. In May 2019, Nexus had raised an estimated $300 million for its fifth investment fund.

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