Bessemer Ventures Unveils $350M India Fund to Empower AI, Fintech, and Digital Health Startups

Bessemer Venture Partners Launches $350 Million India Fund

Bessemer Venture Partners (BVP) has unveiled its second dedicated India fund, raising an impressive $350 million (approximately Rs 3,051 crore). The fund is set to drive investments in promising sectors including artificial intelligence (AI), software-as-a-service (SaaS), fintech, digital health, consumer brands, and cybersecurity.

A Strategic Investment in High-Growth Sectors

Following the success of its initial India-focused fund of $220 million in 2021—which supported emerging startups such as Boldfit, MoveInSync, Pepper Content, Shopdeck, Vetic, and Zopper—BVP has significantly broadened its commitment to the Indian market. The new fund is designed to back early-stage companies with investment rounds ranging from $5 million to $40 million, ensuring support throughout their growth journey.

“The fund was substantially oversubscribed, but we capped it at $350 million. Also, the limited partner base includes global universities, foundations, sovereign wealth funds, and a variety of family offices,” noted Vishal Gupta, partner and managing director at BVP's Bengaluru office. This statement underscores the wide-ranging appeal and robust confidence from the international investment community.

Focus on AI and Verticalized Solutions

BVP’s investment blueprint spans several technological domains. The firm is currently exploring key areas within the AI landscape, including:

• Foundational Models and Infrastructure: Laying the groundwork for sophisticated AI systems.
• Verticalized AI Applications: Tailoring AI solutions for specific industry needs.
• AI-Led Services: Enhancing traditional services through intelligent automation.

Anant Vidur Puri, another partner at BVP, remarked on the firm’s AI strategy, emphasizing that companies delivering verticalized AI applications and AI-enabled services for different sectors stand out as the top investment priorities in India.

Global Presence with Local Impact

Globally, BVP boasts a diverse portfolio including household names such as Pinterest, Shopify, Twilio, LinkedIn, DocuSign, Fiverr, and Toast. Managing over $18 billion in assets, BVP’s growth and strategic moves have consistently set benchmarks in the venture capital arena.

The closure of the $350 million fund emerges at a time when several venture capital firms are making significant strides in the Indian market. For instance, Accel India recently closed its eighth fund with $650 million in commitments, while Stellaris Venture Partners concluded its third India-dedicated fund at $300 million.

Looking Ahead

With a clear focus on bolstering early-stage ventures and enacting long-term support strategies, BVP’s latest fund signals a continued commitment to nurturing innovation in India. The strategic focus on sectors like AI, SaaS, fintech, and digital health suggests that BVP is poised to play a transformative role in shaping the future of these industries in the region.

BVP’s endeavor reinforces the narrative of a vibrant, evolving startup ecosystem in India, where global expertise meets local innovation.