US-based VC fund General Catalyst acquires Venture Highway in India

US-based VC fund General Catalyst acquires Venture Highway in India


US-based VC fund General Catalyst acquires Venture Highway in India
Representative AI image (Credit: Lexica)

Mumbai: US-based venture capital ,Vice Chancellor) Investors General Catalyst has acquired a local investment firm Venture Highway It plans to capitalise on the growing opportunities in India and increase its stakes in the region by investing between $500 million and $1 billion in the market in the coming years.
“India's economic, political and strategic agency in the world is growing… With India's agency growing and the geopolitical backdrop changing, the need for an extremely strong and deep India-US cooperation has become imperative today,” the Silicon Valley-based firm said in a statement. The firm has backed Indian startups such as Cred and Spinny.With expertise in seed-stage investing and a local presence, Venture Highway has a strong understanding of the Indian market as well as access to local talent; this is what General Catalyst is looking to leverage through this acquisition.
Co-founded by former WhatsApp chief business officer Neeraj Arora in 2014, Venture Highway has been an early backer of unicorns such as Meesho and Moglix. The firm will now lead General Catalyst's initiatives in India, the third-largest startup ecosystem worldwide after the US and China. “General Catalyst and Venture Highway aim to combine global networks and capital with deep localisation to redefine venture investing tailored to India's unique opportunities and challenges,” the firm said.
Recently, several VCs as well as PEs (private equity investors) have raised new funds with a significant allocation to the Indian market, where a large consumer base and rising disposable incomes offer opportunities for startups to build and innovate. Startup funding which has been slow in line with the global tech slowdown is picking up pace with some late-stage deals in the pipeline.
In an interview to TOI last year, General Catalyst CEO and managing director Hemant Taneja had said that many new Indian businesses are expected to enter and expand in sectors such as agriculture, climate, healthcare and semiconductors in the next five to ten years, including helping the country's tech sector. “A lot of work has been done around Aadhaar, UPI, which makes us well positioned for innovation. This is an unprecedented opportunity for India in the next 15 years,” Taneja had said.





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