Europe-based venture capital firm Mangrove Capital Partners is planning to invest around $250 million in Indian e-commerce, internet and telecom startups.
The VC fund plans to invest in companies that offer disruptive models in the e-commerce and telecom space, for an investment period of 5-10 years. Mangrove had earlier invested $5-10 million in hybrid e-commerce platform Store King that doubles up as grocery stores in the tier-3 and lower towns in Karnataka, Tamil Nadu, Andhra Pradesh and Kerala.
“India is going to be a fantastic market for us because there will be millions of people getting on the internet. Second, only local technology and local solutions can resolve local problems,” Michael Jackson, a general partner at Mangrove Capital told ET.
Started in 2000, Mangrove focuses on early-stage information technology companies and has since invested over 70 startups across Europe, Israel and Russia. It currently manages assets of about $1 billion in four funds that invest in and guide small entrepreneurs, who need funding to grow. The firm has invested about $25 million in three tranches in Danish messaging app maker Nimbuzz, which was 70 per cent acquired by the UK-based New Call Communications for $170 million in October last year.