India among most vibrant startup ecosystems in the world: Sequoia's Roelof Botha

By siliconindia  |  Wednesday, 14 June 2023, 12:05 IST

India among most vibrant startup ecosystems in the world: Sequoia's Roelof Botha
Sequoia Capital's Managing Partner Roelof Botha said that Sequoia Capital India and Southeast Asia flourished under the leadership of Shailendra Singh, instilling confidence in the management of the arm, a week after hiving off it as a separate entity. “Sequoia India and SEA have flourished under Shailendra’s (Singh) leadership and we are proud of the portfolio’s scale, quality and strength. Operating as an independent firm will provide more flexibility to further strengthen the market leadership position,” said Botha.
Botha also said that India, the world's third-largest startup ecosystem, is currently among the most vibrant markets in the world and he is excited for Peak XV, the new avatar of Sequoia Capital India, as they double-down on the region. "17 years ago Sequoia saw an opportunity in India as a promising market for startups and entrepreneurship. Since then Sequoia India has been instrumental in cultivating the startup ecosystem in the country, which has become one of the most vibrant in the world. I am very excited for Shailendra and the Peak XV team as they continue to double down on the region," he added.
Botha's comments follow Silicon Valley investor and CEO of Social Capital Chamath Palihapitiya's remarks, where he voiced disbelief at Sequoia's decision to exit the Indian market. Palihapitiya said that while he could understand Sequoia's decision to exit from China since the country is “largely uninvestable for the next 30-40 years,” he “was surprised about why they would allow India to leave.”
Sequoia announced a split which created three units Sequoia Capital US and Europe under Roelof Botha; the India and Southeast Asia firm, which has been rebranded as Peak XV Partners, under Shailendra Singh; and the China firm, now called HongShan, under Neil Shen. In an interview, Singh had said the domestic team was now large enough to venture out on its own and invest in India, where the ecosystem will be parallel to that of the US in the next 5-10 years.
"My team and I believe that we will have parallel ecosystems of software companies, development tools companies, infrastructure, and cloud computing, all built by Indian brands. And that's our biggest common brand conflict. If it was one or two deals a year, we could deal with the conflict. But if this conflict is a weekly issue for us. It's a big issue," Singh had said while explaining the split. Things are already looking good for Peak XV, which marked its first cash exit by selling its remaining stake in Go Fashion, the parent company of Go Colors.
In November 2014, Peak XV had invested around $10 million in the women’s legwear maker and has now exited the company with a whopping return of $150 million, translating to a 15-16X multiple on the original investment, at an internal rate of return (IRR) of 43 percent as stated in a report earlier. Singh had also said that the profit-sharing agreement between the VC firms will be dissolved which meant the entire sum would now go to the revamped Peak XV team.

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