India’s emerging tech companies remain attractive investment opportunities despite the recent challenges faced by notable startups such as Paytm and Byju’s, according to Bejul Somaia of Lightspeed Venture Partners.
Earlier this year, Paytm, founded by Vijay Shekhar Sharma, encountered a major setback when a regulatory order significantly impacted its payments bank affiliate. Meanwhile, Byju’s has been grappling with corporate governance issues and legal hurdles, threatening its operational stability.
These incidents have undoubtedly impacted the startup ecosystem. However, Somaia emphasized that India’s stable political environment, booming capital markets, and effective central bank management of interest rates and inflation continue to make the country an appealing destination for venture capital.
Last year, Lightspeed raised $500 million for a new fund targeting India and Southeast Asia. The firm’s investments in India include companies such as the online grocery service Zepto, the e-commerce platform Udaan, and the fintech company Razorpay.
In addition to its significant presence in India, Lightspeed is expanding its focus on artificial intelligence infrastructure. This is evident from its investments in France’s Mistral AI and the San Francisco-based AI safety and research firm Anthropic. With over $30 billion in assets under management, Lightspeed’s influence and reach in the global tech investment landscape continue to grow.
