Sequoia Capital Is Top Investor In Indian Unicorns: Hurun List
Signage is displayed outside of offices for Sequoia Capital in Menlo Park, California, U.S. (Photographer: Elijah Nouvelage/Bloomberg)

Sequoia Capital Is Top Investor In Indian Unicorns: Hurun List

Sequoia Capital has backed the maximum number of Indian unicorns, a report showed, as it aims to be a part of the fastest-growing internet economy in the world.

The U.S.-headquartered venture capital fund has funded as many as eight Indian startups with a valuation in excess of $1 billion, according to the Hurun India Top Unicorn Investors List 2020. Japan’s SoftBank Group Corp. and U.K.’s Steadview Capital come second by financing 7 Indian unicorns each.

Sequoia Capital had announced in July the creation of a $1.35 billion fund, comprising a venture fund of $525 million and a growth fund of $825 million, that would exclusively invest in Indian startups.

Indian unicorns have been appealing bets for foreign investors, with nearly two-thirds of their backers from abroad, according to Hurun. SAIF Partners has placed its bets on six unicorns, while Matrix and Nexus Venture Partners have funded five unicorns.

Asia’s third-largest also has the world’s second-largest internet user base, and its online services sector is expected to nearly quadruple to $124 billion in value in the four years through 2022, according to the Internet and Mobile Association of India.

As many as 18 investors have invested in three or more Indian unicorns, with two out of every three such investors having funded Bhavish Aggarwal-controlled Ola Cabs, according to the report. “These investors play a significant role in accelerating the creation of new wealth in India,” Anas Rahman, chief researcher of Hurun Report India, was quoted as saying in the report. To identify the investors, we used regulatory filings and feedback from venture capital funds, he said.

RNT Associates, the investment fund started by former chairman of Tata Group Ratan Tata, is among the top eight investors in the list.

India is home to the fourth-highest number of unicorns globally after the U.S., China and the U.K. One97 Communications Ltd., parent of online payments platform Paytm, is India’s most valued startup, followed by edtech startup Byju’s and hospitality startup Oyo Hotels & Homes.

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