Silicon Valley-based venture capital firm, Storm Ventures has launched a $10 million fund to make investment in Indian SaaS startups in seed and series A rounds.
The fund will be drawn from Storm’s $180 million fund raised in 2015 and the amount can be increased if the current allocation is quickly deployed. Storm will make fundings for companies with an annual run rate between $1 million and $10 million.
“We invest mostly in companies that are based in the U.S., but what we’ve noticed over the last few years is that India is now where China was five to seven years ago,” venture partner Anshu Sharma told TechCrunch. “There will emerge a whole set of new application companies to support the new e-commerce and payment ecosystem, so we think it’s great timing.”
The fund comes after India Prime Minister Narendra Modi unveiled a set of initiatives to support the spurring startup ecosystem of the country.
Sharma further added, “Entrepreneurs are now excited about the potential of India. There is a feeling in Silicon Valley that the government of India understands startup ecosystems and is making it easy to do business in India.”
Earlier this month, Storm Ventures invested an amount of $8 million in Series A round in big data and marketing SaaS company. The firm has invested in over 60 startups all over the globe in SaaS vertical.
As per Goldman Sachs report, Indian eCommerce market is expected to reach $100 million by 2020, thereby creating a big opportunities for SaaS players who are supporting logistics and online payments.
Apart from this, Unicorn India Ventures, Blume Ventures, China’s Apus Group, Tiger Global, SAIF Partners, Accel Partners, Mayfield Fund, Angelprime and Sequoia Capital also launched funds for Indian startups previously.