Bessemer Venture Partners (BVP) has closed a $350 million fund dedicated to India, marking its second India-focused investment vehicle. This move reinforces BVP’s long-term commitment to supporting early-stage startups across key sectors, including artificial intelligence (AI), software-as-a-service (SaaS), fintech, digital health, direct-to-consumer (D2C) brands, and cybersecurity.
Since entering the Indian market in 2006, BVP has backed over 80 startups and has played a crucial role in shaping the country’s startup ecosystem. More than 80% of its investments over the past five years have been directed toward young companies, aligning with its roadmap-driven investment approach. This strategy enables the firm to anticipate industry trends, provide strategic insights, and offer long-term support to founders navigating evolving business landscapes.
BVP’s first India-focused fund backed several high-growth startups, including Boldfit, MoveInSync, Pepper Content, Shopdeck, Vetic, and Zopper. Its broader India portfolio includes well-known names such as BigBasket, Livspace, Perfios, Swiggy, and Urban Company, with nine companies achieving successful IPOs.
Investment Strategy and AI Focus
The new fund will focus on early-stage investments, prioritizing companies with strong product-market fit, sustainable unit economics, and high growth potential. While BVP has traditionally concentrated on seed and Series A investments, it remains flexible, with the ability to invest anywhere from $1 million to $30 million, scaling further through its global funds if needed.
AI remains a key area of focus, with investments spanning four major categories:
- Foundational AI Models – Developing capital-efficient language models, supported by India’s evolving GPU infrastructure.
- AI Infrastructure – Tools that enable seamless AI and machine learning (ML) integration, such as MLOps solutions.
- AI Applications – Industry-specific AI solutions, particularly in fintech and healthcare.
- AI-Enabled Services – Leveraging India’s strong outsourcing market to transition from traditional pricing models to AI-driven, outcome-based services.
Evolving Market Trends
India’s rapidly growing digital economy presents vast investment opportunities. The country is on track to become the world’s third-largest economy, with a $1 trillion internet economy and a $50 billion SaaS market expected by 2030. Additionally, government-backed digital infrastructure, including UPI, ONDC, and the Account Aggregator framework, is driving innovation in fintech, financial inclusion, and embedded finance.
BVP remains bullish on India’s IPO market, citing increased receptiveness among public market investors to technology-driven businesses with strong governance and fundamentals. The listing of Medi Assist, one of its portfolio companies, serves as an example of this trend.
With this second dedicated fund, BVP aims to deepen its presence in India, continuing to support visionary founders and category-defining companies from inception to scale.
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