 "Aramco's VC arm building an India team to bet on early-stage opportunities")
Saudi Aramco's venture capital (VC) division is in the process of establishing a team in India and actively seeking early-stage investment opportunities within the country. This strategic initiative aims to capitalise on India's startup ecosystem and expand the fund's international presence, according to a report in the Mint.
According to sources cited by the Mint, Prosperity7 Ventures, a subsidiary of Saudi Arabia's largest conglomerate, is currently in discussions to appoint a leader for its operations in India. The fund manages over $3 billion in assets worldwide.
A source said, "The firm is looking to set aside around $200-350 million for the Indian market. It is looking to have a portfolio of around 15-20 early-stage companies."
Mint quoted another source as saying, "It will invest from seed stage right up to Series A and B of companies."
Presently, Prosperity7 Ventures invests in the US, the Middle East and China. "The firm wants to expand its geographic presence. With the growing deal flow coming from India, it has become a must-have market," the source said.
According to data provided by Tracxn, a private equity and venture capital data provider, the Indian startup ecosystem received a cumulative investment of $7.2 billion in early-stage companies in 2023, the Mint reported.
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As stated on the company's website, Prosperity7 Ventures has allocated over $1 billion worldwide to investments in startups, prioritising scalable technologies and innovative business models that drive transformation across various sectors. It invests in sectors such as enterprise tech, fintech, deep tech, and artificial intelligence, as well as business-to-business, business-to-consumer, and medtech sectors, according to the Mint report.
The VC firm's portfolio includes companies such as Jeeves, Sunrate, Wasabi, SingleStore, Stream Native, Insilico Medicine, SiFive, PragmatIC, Jaka, Callsign, ElroyAir, Vow, and Cart.com.
According to the Mint report, Prosperity7 joins a growing number of newly established investment firms entering the Indian market. Both global and local fund managers are keen to seize the expanding opportunities within the early-stage investment sector.
With the global funding climate improving and the liquidity crunch easing, new funds and allocations are now underway. Tracxn data indicates that 42 new funds were raised in 2023, compared to 110 in 2022 and 198 in 2021, the Mint report stated.