The year 2022 has been a landmark year for venture capital funding value in India. The report from GlobalData states that India witnessed a massive 39 per cent year-on-year growth in venture capital funding deal volume to 976 deals during the first half of 2022.

Despite challenges to raise funds, this trend seems encouraging for the startup ecosystem. And venture capital firms in India will play a significant role in the growth of Indian startups.

In this article, We have curated a list of top venture capital firms that are enabling new-age startups to grow and scale with early-stage and seed round investments.

We'll be covering the following 16 top most active VC firms in India:

1. Accel Partners
2. Sequoia Capital
3. Nexus Venture Partners
4. Kalaari Captial
5. Blume Ventures
6. Chiratae Ventures
7. Matrix Partners
8. Elevation Capital
9. Tiger Global Management
10. Omidyar Network India
11. Venture Highway
12. Axilor Ventures
13. Trifecta Capital Advisors
14. Ankur Capital Fund
15. Omnivore Partners
16. Helion Venture Partners

Let us dive deep into each one.

1. ACCEL PARTNERS

With more than three decades of experience in the startup ecosystem, Accel Partners is one of the oldest venture capital firms in India.

This California-based venture capital firm, which has backed hundreds of businesses, primarily invests in internet technology startups.

Depending on the type of firm, Accel Partners' investment ranges from $500K to $50 Million.

Domains of Investment: Infrastructure, Mobile & Software, Internet and Consumer Services

Startup Invested: Myntra, BookMyShow, BabyOYE, Freshdesk, Flipkart, etc.

Stage: Early Stage Venture, Late Stage Venture, Seed

2. SEQUOIA CAPITAL

American venture financing firm Sequoia Capital was founded in 1972. Menlo Park, California, serves as the company's headquarters.

They invested in major corporations including Apple, Google, Dropbox, and WhatsApp early on. They established a subsidiary called Sequoia Capital India in 2006, which specializes in financing high-growth startup companies.

Justdial, Byju's, Freecharge, Practo, and CarDekho are a few of their significant investments in India. Sequoia Capital India has raised $3B across eight funds.

On March 25, 2021, the most recent donation of $195M was disclosed.

Domains of Investment: Healthcare, Consumer Internet, Financial Sector, and Technology

Startups Invested: JustDial, Zomato, Practo, Groupon, etc.

Stage: Early Stage Venture, Late Stage Venture, Seed.

3. NEXUS VENTURE PARTNERS

Nexus is a venture capital company with US headquarters that targets investments in e-commerce, information technology, consumer services, and other areas.

Large brands like Unacademy, Zomato, OLX, Rapido, etc. are included in its portfolio. To date, Nexus Venture Partners has raised $1.4B across five funds, the most recent of which is Nexus Ventures V Ltd.

Domains of Investment: Data Security, Mobile, Infrastructure, Bio Data Analytics, Agribusiness, Consumer and Business Services

Startup Invested: Craftsvilla, Snapdeal, Shopclues, etc.

Stage: Early Stage Venture, Seed

4. KALAARI CAPITAL

A $160 million venture capital fund called Kalaari invests in early-stage, technology-focused businesses in India.

It has a solid advisory staff in Bangalore. Kalaari Capital's impressive investment portfolio includes companies like Cure.fit, SimpliLearn, Dream11, Haptik, MilkBasket, and others.

To date, Kalaari Capital has raised $479M across three funds, the most recent of which is the Fourth India-Dedicated Fund.

Domains of Investment: Internet, ECommerce, Curated Web

Startup Invested: Snapdeal, ScoopWhoop, Myntra, Urban Ladder, Instamojo etc.

Stage: Early Stage

5. BLUME VENTURES

An Indian venture capital firm is called Blume Ventures. Karthik Reddy and Sanjay Nath founded it in 2011, and it makes investments in seed, series A, series B, and debt funding for early-stage businesses.

The businesses in its portfolio include Instamojo, Dunzo, LBB, and Unacademy. To date, Blume Ventures has raised $378.2 million across 6 funds, the most recent of which is Blume Ventures Fund IV.

Domains of Investment: Mobile Applications, Internet & Software Sectors, Telecommunication Equipments, Research and Development

Startup Invested: Cashify, HealthifyMe, TaxiForSure, Belong etc.

Stage: Early Stage Venture, Seed

6. CHIRATAE VENTURES

Leading IT venture funding firm Chiratae Ventures supports Indian entrepreneurs. The company, founded in 2000, invests in startups and early-stage companies in the consumer, software, fintech, and health tech industries.

They have clients like POPXO, Bounce, Flipkart, eShakti, and others in their portfolio. To date, Chiratae Ventures has raised $637M in three funds.

Domains of Investment: Mobile, Software Products, Engineering-Medical Devices, Technology-based Consumer Services

Startup Invested: FirstCry, Yatra, Lenskart, Myntra, Zivame, etc.

Stage: Early Stage Venture, Late Stage Venture, Seed

7. MATRIX PARTNERS

Matrix Partners India is a private equity and venture capital firm that invests in consumer technology, enterprise, fintech, healthcare, Edtech, etc. A part of Matrix Partners, the firm’s investments includes Chumbak, Country Delight, Dukaan, among others.

Matrix Partners India has raised a total of $721M across two funds to date, their latest being Matrix Partners India III.

Domains of Investment: Entertainment and Media, Consumer Internet, SaaS, E-commerce etc.

Startup Invested: Limeroad, Housejoy, FIITJEE, Ola, mSwipe etc.

Stage: Early Stage Venture, Seed

8. ELEVATION CAPITAL

Investing in consumer goods and services, technology, media, education, telecom, financial services, healthcare, travel and tourism, and manufacturing are the main areas of concentration for Elevation Capital, an early-stage venture capital firm.

Their portfolio includes high-growth firms including Meesho, BookMyShow, FamPay, etc. They were founded in 2011. Elevation Capital has raised $670M in total for Fund VIII, one of its venture funds.

Domains of Investment: Consumer products and services, technology, media, education, telecom, financial services, healthcare, travel and tourism, and manufacturing

Startup Invested: Capital Float, Firstcry, Swiggy, IndustryBuying, Aye Finance, Rivigo, Cleartax.

Stage: Stage Agnostic, Private Equity

9. TIGER GLOBAL MANAGEMENT

Tiger Global, an investment company that was established in 2001, invests money in both public and private markets all around the world.

The worldwide internet, technology, telecom, media consumer, and industrial sectors are primarily the focus of the company's fundamentally driven investments.

Among the companies in its portfolio are Pristyn Care, Slice, Upstox, Spinny, and others. The most recent fund established by Tiger Global Management, Tiger Global Private Investment Partners XVI, brought in a total of $44.9 billion across ten funds to date.

Domains of Investment: Internet, Software, Consumer, Financial Technology

Startup Invested: Urban Company, Flipkart, Moglix, OPEN, Ninjacart, Razorpay.

Stage: Growth, Late Stage, Private Equity, Post- IPO

10. OMIDYAR NETWORK INDIA

Omidyar Network India makes equity investments in early-stage enterprises and provides grants to nonprofits.

They primarily invest in the fintech, edtech, and digital tech sectors. Their portfolio includes HealthKart, Quikr, Kutuki, etc. Their most recent investment was on Apr 28, 2022, when TEAL raised 148M.

Domains of Investment: Fintech, Edtech, Digital tech

Startup Invested: Dailyhunt, Indifi Technologies, 1mg, Needslist, Bounce, Platzi, Pratilipi, Healthkart, Doubtnut, ZestMoney, WhiteHat Education Technology.

Stage: Early Stage, Seed Stage

11. VENTURE HIGHWAY

An early-stage venture capital firm called Venture Highway is interested in making investments.

The 2010-founded company specializes in IT startups. It has substantial investments in Meesho and CureLink.

To far, Venture Highway has raised $78.6M for two funds, the most recent of which is Venture Highway Fund II.

Domains of Investment: Consumer, Tech

Startup Invested: CureLink, Ivy Homes, Grip, Moglix, ShareChat, Meesho, Urban Yogi

Stage: Early Stage Venture, Seed

12. AXILOR VENTURES

Kris Gopalakrishnan and SD Shibulal, among others, created Axilor Ventures, an early stage seed fund and startup accelerator.

They typically invest in early-stage firms in the consumer internet, business SaaS, healthcare IT, AI, fintech, and industrial IoT industries.

Their list of clients includes companies like Womaniya, EnKash, and others.The company has thus far raised $21M, according to Cipherbio.

Domains of Investment: Consumer Internet, Enterprise SaaS, Healthcare Technology, Artificial Intelligence, Fintech and Industrial IoT

Startup Invested: QuickShift, MedFin, EnKash, Womaniya, Petoo, Lytyfy.

Stage: Early Stage Venture, Seed

13. TRIFECTA CAPITAL ADVISORS

Technology startups in India are financed by Trifecta Capital Advisors. Among their well-known investments are BharatPe, Box 8, Cure.fit, and others.

They invest mostly in consumers, healthcare, and technology. To date, Trifecta Capital Advisors has raised $586.6M over four funds.

Domains of Investment: Technology, consumer and healthcare domain

Startup Invested: BharatPe, Big Basket, Bizongo, Blackbuck, Box 8, Cure.fit, Country Delight, GoQii.

Stage: Early Stage Venture, Seed

14. ANKUR CAPITAL FUND

Ankur Capital is an early-stage venture capital fund that makes investments in opportunities brought about by the next billion Indians' increasing aspirations and access to the digital world.

They make investments in new technology and goods that have the potential to have a significant influence on agriculture, healthcare, education, and other sectors.

They contribute more than just financial resources; they also work with portfolio companies to speed up their growth. Many of the businesses in our portfolio have now raised additional rounds of funding.

Domains of Investment: Agri tech, food, healthcare, skill development, and education among others.

Startup Invested: Cropin, Tessol, BigHaat are some of the startups funded by Ankur Capital Fund.

Stage: Convertible Note, Early Stage Venture, Seed, Venture

15. OMNIVORE PARTNERS

Improve food systems and omnivore their portfolio of agricultural prosperity to strengthen and sustain agriculture. They offer a variety of services, such as farmer platforms, precision farming, agri-biotech, and others.

In order to invest in early stage technology driven start-ups with a focus on agriculture, food, climate change, and rural development, Omnivore is establishing a new $130 million (Rs 1000 crore) fund.

Domains of Investment: technologies for food and agriculture.

Startup Invested: Arohan Foods, Skymet, Eximdesk.

Stage: Early Stage Venture, Seed, Venture

16. HELION VENTURE PARTNERS

Helion Ventures Partners is an India-focused, early to mid-stage venture fund, investing in technology-powered and consumer service businesses.

Their portfolio includes the likes of Whatfix, Slintel, Livspace, etc. Helion Venture Partners has raised a total of $519M across two funds to date, their latest being Fund IV.

Domains of Investment: eCommerce, Online services, Mobility, Enterprise Software, and Outsourcing

Startup Invested: Eye-Q, Denty‘s, Housing.com

Stage: Early Stage Venture, Late Stage Venture, Private Equity, Seed

CORPORATE VENTURE CAPITAL FIRMS

A multinational corporation or conglomerate that makes direct investments in private businesses is known as a CVC, or corporate venture capital.

Organizations typically have a designated venture capital arm that handles the funds in order to enable this transaction. Microsoft's M12, Mahindra Partners, Cisco, and Google Ventures are a few well-known CVC businesses.

With 31 startups funded per year, corporate venture capital has grown to be a significant source of startup funding throughout the years.

CVC deals in Indian companies have experienced a 7% average yearly growth rate in terms of startup funding. 39 CVCs in India invested in 144 Indian companies between 2015 and Q3 2020, with Brand Capital being the most active CVC.

FAQ's (Frequently Asked Questions)

1. How does a venture capital firm work?

Entrepreneurs who need funding, investors who want high returns, investment banks who need companies to sell, and venture capitalists who profit by creating the market for the other three are the four main players in the venture capital industry.

Investment bankers give the capital to the venture capital company, which then makes investments in start-up businesses. However, they do not manage the VC business.

Because of the high predicted returns relative to their other possibilities, they are prepared to invest in a VC fund (public equity markets, debt, real estate, etc).

However, they are also aware of how hazardous the investment is, so they only devote a tiny portion of their funds—generally between 5 and 10%—to VC.

Venture capital firms approach potential investors and present them with the fund idea (they also actually make a deck like startup founders do). and, ideally, obtain checks from them.

They must find companies (VCs refer to this as "Deal Flow"), assess them ("Due Diligence"), and then invest in them ("Write the Check," obviously!").

After making an investment in these firms, they now support their growth by offering all assistance they can. It could involve planning, finding talent, making introductions to prospective partners, or finding investors for the next fundraising effort.

The VC FIRMS either attempt to go public with the business (IPO), sell it to another business (M&A), or sell it to a different investor (Secondary sale). They gain money at this stage and then give it back to the initial investors.

2. How many venture capital firms are active in India?

By 2022, there will be over 800 venture capital firms  operating in India.

3. What are the different types of venture capital in India?

The 3 main types are:

1. Early stage financing,
2. Expansion financing,
3. Acquisition/buyout financing.

4. How to choose the right Venture capital firm in India?

1. The venture capital firms' networks.

In addition to cash from your venture capital firm, you will need their contacts the most as a new business owner.

This is due to the fact that finding new investment companies to partner with that can help you raise money in the future is just as crucial as finding your current investor.

2. Competence of Professionals in Venture Capital Firms.

Finding a venture investor who is educated about your business might be very helpful to you, even though it is not a deal-breaker.

His experience working with businesses like yours will help you avoid any future setbacks.

3. Your and your venture capital firm's growth ambitions.

Even if your business is in the early stages, you will eventually want to expand. So, considering a VC who will succeed in filling future fund needs or helping you network with other VC firms is vital before selecting a VC.

Great! Now you are all set to make up your mind on selecting a Venture capital firm for your business.

If you don’t own a business but just wanted some knowledge on a Venture capital firm.

5. Which VC firm is most successful in India?

SEQUOIA CAPITAL is one of the oldest and most successful VC firms of india.

CONCLUSION

Owners frequently become anxious when selecting the best venture capital firm for their company and end up selecting the incorrect VC. They eventually get mentally burdened by this, which adds to their stress levels.

This is why giving the decision considerable thought and investigating the many venture capital firms that are open to you is a wise move. Understanding your vision is a prerequisite before searching for a VC that can support it.

Being satisfied with the financial support is just as important for a start-up owner as receiving an investment because you never know what kind of support you might require down the road. Oh, and do utilize the checklist we created for you.