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action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114Source:https:\/\/techcrunch.com\/2023\/06\/14\/lightspeed-says-india-not-for-the-faint-hearted-amid-sequoia-split\/<\/a><\/br> Bejul Somaia, the founding partner of Lightspeed India, staunchly defended the allure of South Asia\u2019s investment landscape, even in the wake of unsettling movements such as Sequoia\u2019s decision to segregate its Indian venture<\/a>.<\/p>\n \u201cThe startup and venture model is predicated on learning and adapting fast, navigating to high upside and understanding that the few companies that really succeed drive economies and humanity forward and create enormous value,\u201d Somaia wrote in an essay<\/a>, posted on Twitter.<\/p>\n \u201cAnd those that don\u2019t succeed contribute to a cycle of creative destruction that is essential to the development of an innovation economy. The potential of India remains incredibly compelling: a sizable market, high-quality founders and one-way adoption of technology. The question is not whether there is potential, but how best to navigate this potential.\u201d<\/p>\n Somaia\u2019s remarks come on the heels of an escalating critique from certain industry figures who have been openly skeptical about Sequoia\u2019s decision to cut the India and Southeast Asia arm. The storied venture firm said earlier this month that it intends to separate its Indian and Chinese operations from the U.S. mothership, a move that has instigated heated debate in the industry.<\/p>\n Chamath Palihapitiya, the billionaire founder of Social Capital, said he was puzzled by Sequoia\u2019s decision to split up the India business. \u201cI was surprised why they would allow India to leave,\u201d he said on his podcast All-In last week. \u201cIndia is a country growing at 6% a year. It literally looks like China in 2008-09. I think you would want to attach them to yourself because it makes the U.S. business look better.\u201d<\/p>\n Palihapitiya said he doesn\u2019t buy the idea \u2014 the on-record justification provided by the venture firm \u2014 that Sequoia is splitting the business because of portfolio conflict concerns.<\/p>\n \u201cSequoia China is frankly over the last 15-20 years is as good or probably better than Sequoia U.S. Sequoia India, I don\u2019t think, has much to talk about and maybe what Roelof [Botha, Managing Partner at Sequoia Capital] decided was that this team is just not very good, so we might just as well cut it and revisit it later.\u201d<\/p>\n Sequoia India and SEA, the most prolific investor in the region, raised $9.2 billion across 13 funds over the past decade-and-a-half and backed over 400 startups. The firm, now known as Peak XV Partners, has delivered $4.5 billion of realized exits.<\/p>\n Lightspeed India, which also started investing in India over a decade ago, has raised $1.6 billion to date and returned about $1 billion to its limited partners and the value of its current asset holding is\u00a0$3.4 billion, Somaia said.<\/p>\n \u201cIndia is not for the faint-hearted. India is tough. But India is worth it,\u201d he wrote.<\/p>\n India has progressively come to the fore as a key overseas market for venture capital and private equity investors, who have been scouring the globe for substantial growth markets, over the past two decades. However, even though Indian startups have raised more than $75 billion in funding over the past 15 years, meaningful exit opportunities for investors have been few and far between.<\/p>\n Tiger Global partner Scott Shleifer echoed similar sentiment earlier this year. India is likely to produce the highest equity returns globally in the future, he said, but admitting that the world\u2019s second-largest internet market had delivered below average returns<\/a> for the investor giant historically and the local startup ecosystem was grappling with governance and unit economics challenges.<\/p>\n \u201cReturns on capital in India have sucked historically. If you look at the market-leading internet companies, whether it is Google, Facebook, Alibaba or Tencent, revenue for them got bigger than cost more than a decade ago. You had a great legacy of the last 17-18 years of materially profitable internet companies. So returns on equity in the internet got really high and the returns for investors have been really high. But that did not happen in India,\u201d he said.<\/p>\n<\/p><\/div>\n <\/br><\/br><\/br><\/p>\n
\nLightspeed says India not for the faint-hearted amid Sequoia split<\/br>
\n2023-06-15 22:08:40<\/br><\/p>\n