The venture capital firm is looking to seed Series B bets on Indian companies with a check amount ranging from $100,000 to $10 million from its third fund, Yasin, which left Tiger Global in 2013, told AND.
The fund, which has backed global companies such as Facily, Kitopi, Kueski and Gaia, has already completed two transactions in India recently. He invested in TradeX, an investment app, and SaveIn, a neo-bank, as part of their biggest seed rounds raised in the past month.
“India will likely contribute more than 25% of our global portfolio,” Yasin said.
Tech startups in India will create well over $1 trillion in market capitalization by 2030, he added. “India is probably five years behind China in developing the tech ecosystem.”
The company, which raised an initial fund of $100 million in 2014, is now rolling out its third fund which it mopped up in 2019.
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Although the amount remains undisclosed, sources said his amount was between $150 million and $180 million.
The firm invests in emerging economies such as Latin America, the Middle East and North Africa (MENA) and Southeast Asia.
In 2020, Rise Capital participated in a larger investment round in Hopscotch, a children’s clothing brand, when it raised $25 million from investors led by Eduardo Saverin’s EE Capital.
“Every aspect of life is now being disrupted by technology. We are looking for internet-enabled business models. the one in the United States, and it’s expected to grow 10-fold over the next five to 10 years, so the opportunity here is huge,” Yasin said.
On a per GDP basis, the United States attracts five dollars of investment for every dollar invested in India and so there is a huge upside, he added.
India’s technological talent will help the country take the lead among other emerging markets, he said.
“Tech talent in India is very strong. Founders and teams separated (from established companies) to start their own businesses. A lot of tech talent used to migrate to the US, but now people want to come back and start businesses,” he said.
Although global liquidity seems to have dried up, India is a key market for many global funds. Over the past 18 to 24 months, crossover funds, hedge funds and technology-focused funds have all moved into India, bringing new pools of capital to support high-growth businesses.