NEA to invest $200M in India
New Enterprise Associates (NEA) a venture capital firm is
expanding its operations in India. The Indian operations will work closely with
NEA's U.S. based technology team as it focuses up to $200M investments in several
sectors like telecom, KPO/BPO, media, energy, technology driven consumer finance
and technology innovations in rural and agricultural sectors within India in
over three to four years.
The minimum investment in an organisation that NEA is planning
to make is five million dollar and highest around $ 40-45 million with no break
ups in the total investment into different sectors. Their highest investment
would be for Indian entrepreneurs.
"We have been selectively investing in India for many
years and believe the country offers an attractive environment for venture investing,"
said Peter Barris, NEA Managing General Partner. "Given our experience
to date, we believe it is the right time to expand our investment focus in this
region and we look forward to working with the many talented and successful
entrepreneurs and executives in India."
The India expansion is in line with NEA's strategic plans
to develop a presence in the emerging markets of India and China. "NEA's
focus in India will be on expanding its investment portfolio, while making returns
on our initial investments. We look forward to working with India's best and
brightest entrepreneurs in telecom, media, alternative energy, technology-enabled
services and infrastructure and we are in talks with four to five solar companies
that are looking at bio- fuel as a space," said Krishna "Kittu"
Kolluri, General Partner, NEA.
India has traditionally been building products and services
companies targeting global markets, however there are several macro trends that
are creating new ventures opportunities targeting the Indian market.
NEA will primarily invest in early-stage IT investments indirectly,
through NEA-IndoUS Ventures. NEA's direct investments will be primarily in mid
to late-stage opportunities.
The company has strategically focused some of its technology
investing efforts on high-growth markets in India, having invested in several
Indian and India-U.S. cross border companies. Examples of these investments
include Sasken, Telsima, Nevis Networks, Protostar, InSilica and GlobalLogic.