We are discussing Prosus Plans to Invest in Early Stage and Growing Startups in India:
Prosus is a global investment group and one of the most active investors in Indian startups. The firm invests in startups across various sectors with long-term growth potential. This investing firm changed its strategy from making large bets in Indian startups to investing in early and seed-stage startups. To date, Prosus has invested over $7 billion in Indian startups.
The data from Tracxn and inc42 shows the firm has invested mostly in unicorns, including Swiggy, Pharmeasy, and Meesho. The number of deals secured by the company has declined since 2021 from 10 deals to 3 deals in 2023 and one deal in the late-stage company for 2024 so far. However, the firm has increased its investment in series A rounds and seed-stage startups. The company invested Rs 160 crore in a seed funding round of Kratos Studios in 2023, followed by a $26 million investment in Lyscraft during its seed funding round with the participation of Peak XV partners who lead the funding round.
This VC firm has increased its investment focus towards Artificial Intelligence platforms like EMA. The company invested $35 million in the seed funding round of EMA with the participation of Accel and other investors. Prosus has also invested in seed-stage startups in other countries, including the US and Australia. The company changed its strategy and is now competing and collaborating with early-stage investors. To reduce the losses faced by late-stage companies, VC firms are now building larger portfolios rather than depending on startups for return. Large-deal startups are also slowly coming back on track. Flipkart recently secured investment from Google, and Meesho also raised large rounds.
Prosus is looking forward to the IPOs of its other investments, including Swiggy, PayU India, and Eruditus. The firm changed its focus from China to India in 2022 after overriding regulatory concerns to divest its 25 percent in the Chinese e-commerce giant. The demand gap in late-stage startup ecosystems is driving away investors. The only alternative for large VC firms is to invest in early-stage startups and emerging sectors in the Indian startup ecosystem, such as AI development, Semiconductor, deep tech, and fintech sectors. Various VC firms, including Tiger Global, accel, and Peak XV partners, also moved their focus to early-stage companies.
Conclusion
Prosus is one of the most active investors in India, and it plans to invest in seed and early-stage startups. This VC firm has invested over 7 billion USD in Indian startups to date. The company used to mostly invest in unicorns and late-stage companies, including Swiggy, Pharmeasy, and Meesho. However, the company has increased its investment in series A rounds and seed-stage startups.
Prosus has also invested in early-stage companies in other countries, including the US and Australia. The company changed its strategy and is now competing and collaborating with early-stage investors. To reduce the losses by investing in late-stage companies, VC firms are now focusing on building larger portfolios rather than depending on startups for returns.
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