In a strategic move to fortify its presence in India’s booming startup ecosystem, US-based venture capital fund General Catalyst, known for backing successful ventures like CRED and Spinny, is reportedly in preliminary discussions to acquire Venture Highway, a seed-focused venture capital firm based in India.
According to reports, General Catalyst is exploring various options, including the acquisition of other Indian venture capital firms, should the negotiations with Venture Highway not materialize. The move reflects General Catalyst’s commitment to deepen its roots in the world’s third-largest startup ecosystem.
This endeavor aligns with General Catalyst’s established investing playbook, where it has previously acquired country-specific venture capital firms. In October of the previous year, the fund incorporated Berlin-based VC firm La Famiglia, extending its reach into the European market. However, the focus on India has intensified recently, with General Catalyst expressing its dedication to invest $100 million in Indian startups during a media interview last year.
As part of this commitment, General Catalyst led a substantial $2.75 million (around INR 21 crore) funding round in Jeh Aerospace, a Hyderabad-based startup, showcasing its keen interest in supporting promising ventures within the Indian landscape.
Globally, General Catalyst has a formidable portfolio, having backed renowned companies such as Snap, Airbnb, Stripe, Venmo, and many other innovative enterprises.
The current developments come on the heels of the resignation of Samir Sood, a co-founder of Venture Highway, who stepped down from his position as a partner at the VC firm several months ago. Founded in 2015 by Samir Sood and former WhatsApp chief business officer Neeraj Arora, Venture Highway boasts a portfolio that includes unicorns like Meesho, CRED, and Moglix.
If the ongoing talks reach a conclusive agreement, the acquisition will not follow the traditional exit route. Instead, Venture Highway is expected to operate as an investing arm of General Catalyst in India, continuing to focus on early-stage deals within the country.
Venture Highway, known for its commitment to early-stage funding, typically invests an average ticket size of up to $3 million.
