Nexus Venture Partners is in talks with limited partners to raise $400 million for its next new fund. “They (Nexus) have been pre-marketing the new fund since late last year. It has a soft target of $400 million. Given the heightened interest in India, they may raise more,” said a person familiar with the matter.
As per an ET report, with its upcoming fund, Nexus will become the first homegrown venture capital firm to breach $1 billion in terms of total funds under management.
Apart from Nexus, other home grown investors including Helion Venture Partners, IDG Ventures India and Kalaari Capital in Bangalore, and Blume Ventures, India Quotient, KAE Capital and Orios Venture in Mumbai are also looking for fresh capital. In 2014, Sequoia Capital had secured $530 million and Kalaari is also raising a $200-250 million fund.
IDG Ventures India raised $250 million for its second India fund late last year and Accel Partners India is raising $250-275 million for its fourth India fund. Matrix Partners India is expected to announce a new fund early next year. India Opportunity Fund raised $110-million in March last year and also participated in Snapdeal’s $134-million funding round in 2014.
Nexus has so far invested in about 60 startups and racked up a series of profitable exits from investments such as Dimdim (acquired by Salesforce), OLX (acquired by Naspers) and Gluster (acquired by Red Hat).