TLDR:
- Norwest Venture Partners is shifting its strategy towards growth equity and late-stage VC deals in India.
- The firm closed its 17th global fund of $3 billion, with a significant amount allocated for India.
Norwest Venture Partners, a global VC firm, is transitioning its focus to late-stage venture and growth equity deals in India. This shift reflects a change from its initial strategy of backing early-stage companies when it began investing in the country in 2005. The firm’s recent $3 billion fund will also invest heavily in India, where it aims to support growth equity companies, particularly in financial services and healthcare. In the past two years, Norwest has made notable investments in companies such as Regency Healthcare and has emphasized the importance of taking companies public through IPOs.
The firm has ramped up its annual deployment to around $250 million – $300 million in the last two years, compared to $25 million-$30 million when it first entered the Indian market. Norwest’s managing director, Niren Shah, believes that India’s macroeconomic position is strong and foresees a period of prosperity in the country. The firm plans to invest in various sectors, including consumer tech, financial services, healthcare, and manufacturing, with a focus on growth and late-stage companies.
Norwest has a history of successful exits in India and has taken six portfolio companies public. With expectations of four IPOs in 2024, the firm remains exit-focused and continues to deliver strong returns to its investors. Overall, Norwest’s shift towards growth equity and late-stage VC deals in India aligns well with the country’s economic growth trajectory and market opportunities.
