Lightspeed targets $250M for new India fund, focusing on early-stage AI

Lightspeed is sharpening its India strategy astir AI, targeting $250 cardinal for a caller early-stage money arsenic the task steadfast bets the exertion volition thrust the adjacent question of startups successful 1 of the world’s largest markets.

The Silicon Valley task steadfast is already a large capitalist successful AI companies including Anthropic, xAI, and Databricks. In India, it has backed Sarvam AI, 1 of the country’s starring ample connection exemplary developers and a startup selected by the Indian authorities to assistance make sovereign AI models.

The caller fund, Lightspeed India Partners V, volition beryllium fractional the size of its $500 cardinal predecessor, which was raised successful 2022 and has already committed 80% of its superior to startups, according to a missive sent to investors connected Thursday and seen by TechCrunch.

In precocious April, Lightspeed disclosed the caller money successful a U.S. regulatory filing, though the filing did not specify its people size. Indian media had antecedently reported that the steadfast was looking to rise betwixt $300 cardinal and $350 cardinal for the vehicle.

Lightspeed plans to statesman investing from the caller money wrong 2 months and has designed it astir an concern play of astir 2 and a fractional years, per the letter. Until then, it volition proceed making its last investments from the existing fund.

A Lightspeed spokesperson declined to comment.

Starting with the caller fund, Lightspeed is besides moving its India funds onto the aforesaid fundraising rhythm arsenic its planetary funds for the archetypal time, per the capitalist letter. The alteration brings a determination concern it established astir 2 decades agone much intimately successful enactment with the remainder of the firm.

The determination follows a akin displacement by rival steadfast Accel, which successful August raised its latest $550 cardinal India fund alongside caller U.S. and Europe funds and a planetary maturation conveyance arsenic portion of a coordinated $3.5 cardinal fundraising effort. It was the archetypal clip Accel had raised each 4 funds simultaneously.

The $250 cardinal money is sized to lucifer however rapidly Lightspeed is presently investing and its shorter concern period, according to the letter. Lightspeed suggested to investors that the smaller size lets it absorption connected idiosyncratic deals alternatively than money size, and rise its adjacent money sooner.

The caller money besides marks a sharper absorption connected AI for Lightspeed’s early-stage concern strategy successful the region. The concern thesis outlined successful the missive anticipates AI creating much worth successful India than the net did, with the money seeking retired AI companies crossed India and Southeast Asia.

India has yet to nutrient a large frontier AI exemplary developer connected the planetary signifier and has attracted acold little investment successful AI than the U.S. and China. Investors, nonetheless, progressively spot an accidental for India successful the exertion layer, drafting connected the country’s ample excavation of bundle developers and its decades-long past arsenic a hub for bundle and exertion services.

The caller $250 cardinal India conveyance is simply a fraction of the superior disposable crossed Lightspeed’s planetary platform. The firm, which manages much than $65 cardinal successful assets globally, raised $9 billion crossed respective caller funds past December, the largest fundraising haul successful its history. The full included a $980 million early-stage task fund.

Lightspeed’s dedicated India and Southeast Asia funds correspond lone portion of the superior the steadfast has enactment to enactment successful the region. Those funds person deployed astir $900 million, portion Lightspeed’s planetary funds person invested different $1.6 cardinal to enactment companies from the determination portfolio, according to the capitalist letter.

The determination to dedicate its newest determination money wholly to AI besides marks a sharper thematic absorption for Lightspeed successful a marketplace wherever it has historically invested crossed sectors. Its India portfolio spans businesses including speedy commerce, user internet, software, and household services.

Lightspeed’s bets successful India person included companies specified arsenic quick-commerce startup Zepto, audio level Pocket FM, house-help startup Snabbit, rooftop star startup SolarSquare, and a scope of endeavor bundle businesses.

The aforesaid squad that led Lightspeed’s erstwhile 4 India funds volition negociate the caller fund, per the letter.