 "Sequoia")
Sequoia Capital Managing Partner Roelof Botha put to rest all the speculation on the recent split that the global venture fund announced. He also stressed that independent operations will provide more flexibility to strengthen its presence here.
“India’s startup ecosystem is among the most vibrant in the world, excited for Peak XV as they continue to double down in the region,” he said in a statement.
Botha also said that Sequoia India has flourished under Shailendra’s (Shailendra Singh) leadership. “Sequoia India and SEA have flourished under Shailendra’s 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.”
On June 6, Sequoia Capital announced the split of the firms India and China operation. The India operations were rebranded as Peak XV Partners. The management of the firm continues to be the same.
"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," said Botha.
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Botha’s comment, which came after a week after the decision of the split happened, holds significance. Many in the founder and investors community were taken by surprise. Many questioned the timing of the split. It is also of relevance to note that Sequoia backed startups in recent times have been embroiled in corporate governance issues.
As the split happened Botha in a letter said: “It has become increasingly complex to run a decentralised global investment business. For example, each business has evolved to meet the opportunities in their market across a wide range of sector…This has made using centralised back-office functions more of a hindrance than an advantage.”
He also wrote that to deliver on its mission they have decided to accept the local-first approach, which means independent partnerships.
Peak XV Partners portfolio in India and Southeast Asia consists of 400 startups and it is sitting on unallocated funds of $2.5 billion. The total asset under management across 13 funds comes to $9 billion across India and Southeast Asia.
In an email response to Business Standard, Shailendra Singh had said: “We are very bullish on India and Southeast Asia as a market and we are going to only double down. Our performance and track record is our earned brand. Surge, a unique founder-focused programme for early stage founders, is now a huge community across several cities and countries. Spark is an industry-first fellowship programme for female founders. These are much loved and appreciated initiatives started by us in India and Southeast Asia. This is our earned brand.”
