Sequoia Capital, a venture capital firm, is divided into three firms focused on geographies including the United States, China, India and Southeast Asia.
The VC fund said in a statement on Tuesday that over the years, strategies for each business diverged and its scale and market leadership across different geographies led to brand confusion and portfolio strife, prompting C Fund to split into three independent funds. .
Sequoia India and South East Asia (SEA) will be rebranded as Peak XV partners and will operate as a fully independent entity. The India and Oceans-focused fund last raised $2.85 billion in July 2022, investing in early-stage ventures and growth deals in both geographies.
“Our firm will continue to be managed by the current leadership team and continue to invest from recently raised funds with a focus on India and offshore,” Shailendra Singh, managing director, Sequoia Capital India & SEA, said in a statement.
The US and Europe-focused fund will continue to operate under the existing Sequoia Capital branding, while the China fund will be rebranded Hongsham. Rolof Botha will continue to head the US fund, Neil Shen Chien fund and Shailendra Singh India fund.
Since its inception, Sequoia Capital (US/Europe), Sequoia China, Sequoia India & SEA have been built as separate businesses with independent investment decisions. However, due to brand confusion and conflicting portfolios, the leaders of each business have decided to move to fully independent partnerships with different brands to better serve the founders and limited partners, the statement added.
Sequoia India & SEA has raised US$9.2 billion through 13 funds to date and has invested in over 400 startups in the region. “We have seen more than 50 companies already exceed $1 billion in valuation, celebrated 19 IPOs and multiple successful M&A events, resulting in $4.5 billion realized to date. “Our investment team is led by 11 managing directors with an average tenure of over 12 years at our firm,” said the VC fund.
In terms of funding strategy, Peak XV partners will continue to focus on existing areas including SaaS, AI, developer tools, cybersecurity, cloud infrastructure, fintech, climate tech, healthtech and consumer. The fund added that startup programs like Surge and Spark will be doubled.
“To all our founders, we appreciate and are grateful for your participation; There will be no change in the way we interact and manage all of our portfolio relationships. You can continue to say you have the backing of Sequoia Capital India or Sequoia Capital SEA… Our 60+ operating team members across 5 offices working with you in Human Capital, Marketing, Strategic Development, Finance, Policy, Legal will continue to do their best to help you achieve your goals, ” the VC firm added in a statement.
Sequoia Capital’s rebranding comes shortly after several India and SEA portfolio companies such as BharatPay, Trel, Silingo and others battled governance issues and allegations of financial fraud against their co-founders. Following these events, Sequoia Capital postponed the closure of its $2.85 billion India and SEA fund in May 2022 due to reports of financial irregularities and allegations of fraud against some of its portfolios.