Global venture capital firm Bessemer Venture Partners expects artificial intelligence (AI) to disrupt its investment roadmaps, with a disproportionate share of its new $350 million India-dedicated fund likely to flow into opportunities in this new-age technology that promises to transform businesses.
The firm that has backed companies such as Swiggy, BigBasket, Urban Company, Pharmeasy, Cashify and Boldfit is now looking at increasingly investing in companies that are AI-driven, senior executives said in an interview with Mint.
“Investment roadmaps are getting rewritten in the sense if you are not using AI which is a cheaper, better, faster way to serve your customer, whether it’s an enterprise or a consumer, then you may not have a chance to win,” said Vishal Gupta, partner and managing director of the firm, and based in the Bengaluru office.
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The firm, which has been present in India for more than two decades now, is spending more time evaluating opportunities on the services side of AI. “India is at the forefront of the AI-driven transformation, with founders building domestic as well as globally competitive businesses across enterprise software, fintech, and consumer technology. As AI adoption accelerates, we see immense opportunities for innovation, and this fund allows us to back entrepreneurs shaping the next phase of India’s digital economy,” said Anant Vidur Puri, partner, Bessemer Venture Partners, adding that India is really unique in the sense that it doesn’t just have AI talent, but also has a bunch of services talent.
“So, if you think of the world of professional services, be it IT (information technology) services, marketing services, legal services, BPOs (business process outsourcing units), all of them are going to get reimagined in the AI world. And I think India is at the forefront of having the ability to do that, and it’s our opportunity for the taking, and which is why we are very excited about that opportunity.”
The firm has raised $350 million towards its second India fund from its global investors. The first fund, raised in 2021 of around $220 million, is likely deployed more than 70%, these executives said. More than 80% of its investments in India over the past five years have been in early-stage companies.
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“We have closed our $350 million India fund. We also have the ability to pull from our global pools. We have two other global pools, what we call as our core fund, which is a $3.85 billion fund. And we have a pool of capital called Century, which writes $50 million to $200 million checks in late growth stage deals as well. We also have Forge, which is a mid-market buyout fund, but that doesn’t operate in India, but all the other three operate in India,” Gupta said.
The new fund will focus on backing early-stage startups and support them through subsequent growth stages in sectors such as AI, SaaS (software-as-a-service), fintech, digital health, consumer and cybersecurity. Bessemer first established its India presence nearly two decades ago in 2006 and has since invested in more than 80 startups in the country.
Though the firm refused to speak about the exits it has had from the Indian market in the recent years, it has taken money off the table through part and full exits in companies such as food delivery firm Swiggy, quick-commerce platform BigBasket and Homefirst Finance, among others.
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