“The two areas that we are most excited about are AI and fintech software,” said Anant Vidur Puri, Partner at Bessemer. “We expect a large part of this fund to be deployed in these sectors.”
Unlike many funds that concentrate on a particular stage of investment, Bessemer is taking a stage-agnostic approach. While the firm has historically been active in early-stage deals, it is open to deploying capital across different growth phases.
“We can write a million-dollar seed cheque, and we can also write a $30 million growth cheque. Given our stage-agnostic nature, we expect to make a healthy number of investments over the coming years,” Puri explained.
With a strong pipeline of investment opportunities, BVP is set to begin deploying capital from the fund within the next quarter.
“The level of entrepreneurship in India has reached a different scale. We have a full pipeline and are excited about how to go about deploying this fund,” Puri added.
Setting High Bars for Portfolio Companies
BVP maintains stringent investment criteria, aiming to back companies with a clear path to significant growth. “We always want to see that there is an IPO path. Our expectation is that all our investments should be able to cross $100 million in ARR and really scale,” said Puri.
The firm’s high standards have led to notable successes, with nine of its India portfolio companies having already gone public.
Even with its strong track record, BVP acknowledges that it has missed opportunities. “There are definitely companies like Nykaa and BillDesk that we didn’t invest in, and maybe we should have. There will always be ones we miss, but we use that as motivation to improve our decision-making,” Puri admitted.
Several of Bessemer’s portfolio companies are preparing for IPOs, although Puri noted that market timing remains unpredictable.
Bessemer’s second India fund builds on nearly two decades of investments in the country, with previous successes including BigBasket, Swiggy, and Urban Company. As it begins deploying fresh capital, the firm is set to further shape India’s AI and fintech landscape.
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