Sequoia Capital Eyes First Post-Split Investment in India
Sequoia Capital, one of the world’s leading venture capital firms, is reportedly close to making its first investment in India and the Asia Pacific region since its high-profile split with former partners. Sources familiar with the matter reveal that the firm is in advanced talks to invest in Vance, a Bengaluru-based cross-border payments startup.
This potential deal marks a significant milestone for Sequoia, being its first investment since separating from Sequoia India and Southeast Asia, which rebranded as Peak XV Partners. The move comes after Sequoia decided to part ways with its China unit, now known as HongShan, amid escalating geopolitical tensions between the United States and China.
Roelof Botha, Managing Partner at Sequoia, previously described the split as a “significant, irreversible decision.” The separation has prompted all three entities – Sequoia, Peak XV Partners, and HongShan – to explore new investment territories. Reports suggest that HongShan is seeking deals in Europe and North Asia, while Peak XV Partners has established a team in the U.S., targeting investments in American startups.
The potential Vance deal, reportedly being considered by Sequoia’s UK team, involves leading a funding round of $30 million to $32 million. Vance, backed by Y Combinator and Hummingbird, offers a financial services app catering to Indians living overseas. The app facilitates money transfers to India and enables investments in Indian stocks and mutual funds. Sources indicate that Vance is processing nearly $1 billion in annualized payments.
This move underscores Sequoia’s continued interest in the Indian market despite the recent restructuring. It also reflects a broader trend of venture capital firms expanding their geographical focus post-restructuring. The strategic shifts by Sequoia, Peak XV Partners, and HongShan suggest an increasingly competitive landscape as these firms begin to enter each other’s traditional territories.
As the venture capital world watches closely, this potential investment in Vance could signal the beginning of a new chapter for Sequoia in the Asia Pacific region, demonstrating the firm’s adaptability and commitment to identifying promising opportunities in emerging markets.
By
