Lightspeed is sharpening its India strategy around AI, targeting $250 million for a new early-stage fund as the venture firm bets the technology will drive the next wave of startups in one of the world’s largest markets.
The new fund, Lightspeed India Partners V, will be half the size of its $500 million predecessor, raised in 2022, and has already secured commitments for 80% of its $250 million target, according to a letter sent to investors on Thursday and seen by TechCrunch.
Lightspeed plans to begin investing from the new fund within two months and has designed it around an investment period of roughly two and a half years, per the letter. Until then, it will continue making its final investments from the existing fund.
"Starting with the new fund, Lightspeed is also moving its India funds onto the same fundraising cycle as its global funds for the first time," per the investor letter. The change brings a regional business it established nearly two decades ago more closely in line with the rest of the firm.
The $250 million fund is sized to match how quickly Lightspeed is currently investing and its shorter investment period, according to the letter. Lightspeed suggested to investors that the smaller size lets it focus on individual deals rather than fund size, and raise its next fund sooner.
The new fund also marks a sharper focus on AI for Lightspeed’s early-stage investment strategy in the region. The investment thesis outlined in the letter anticipates AI creating more value in India than the internet did, with the fund seeking out AI companies across India and Southeast Asia.
Source: techcrunch
