Sequoia India's Gait and Plans in Indonesia

Sequoia India last week announced $1,35 billion fundraising or equivalent to 19,5 trillion Rupiah. These funds were obtained from a number of limited partners, which is divided into two programs fund: $525 million for venture funds and $825 million for growth funds. The funding focus remains on startups in India and Southeast Asia.

DailySocial had the opportunity to interview the Managing Director of Sequoia Capital India Abheek Anand to discuss their plans in the Indonesian startup ecosystem after this fundraiser.

Indian Sequoia Portfolio in Indonesia

Sequoia India has been investing in startups in Indonesia since 2014, including contributing to capital for Tokopedia and Gojek. This year, they are also enlivening the flow of digitalization supply chain Local FMCG by investing in GudangAda and Ula.

In 2019 they launched Surge accelerator program in its operational area. Several Indonesian startups participated and received funding, such as Qoala, Chilibeli, BukuKas, and several others.

"To date, we have worked with 19 technology startups in Indonesia "to democratize important sectors such as trade, education, finance, F&B, logistics, and hospitality," explained Abheek.

The following is a list of investments that Sequoia India has made for local startups:

Indonesian startups participating in the Surge program:

Focus on early stage startups

Abheek explained that his party saw a trend of rapid development of the startup ecosystem in Indonesia in the last six years. Based on its investment experience, Sequoia India has chosen to focus on funding early-stage startups in the region. They see sectors that have the potential to grow significantly and solve many people's problems.

"We invested in Tokopedia and Gojek in their early days. Currently the company is a source of inspiration for new startup founders. In fact, Indonesia currently has unicorn the most in Southeast Asia," explained Abheek.

He continued, "We want to continue to double down on our commitment to startups in Indonesia, by not just being part of them unicorn the first generation, but also every subsequent generation [..] We think that Indonesia is at a tipping point and will explode with the opportunities of a growing, tech-savvy population."

Investment hypothesis

Look track record In terms of investment, Sequoia India appears to be sectorally agnostic. They collaborate with various business models, ranging from consumer services, B2B, fintech, to healthtech.

"Now more than ever, businesses with solid unit economics are no longer just nice-to-haves [through investment]. They are must-haves. What we look for are founders who build businesses with reasonable unit economics in a large market share," he explained.

It is felt that the impact of the Covid-19 pandemic has not slowed down their investment tensions.

"We continue to meet passionate founders with interesting ideas and businesses, especially in the early stages. Previously we would have weekly chats with founders in Jakarta and we will continue to -- and move those conversations globally online."

Currently program Surge 04 is also open the registration. They hope that more early stage startups in Indonesia can be involved in this program.

Abheek said, "Our one message to founders is: that it is never too early to talk to us. We are available via email, all social media platforms, and are constantly creating more channels. The economy is not closed, businesses are still being created every day . We continue to be interested in partnering with bold founders to make a splash in the world."

"The recent fundraising of $1,35 billion is an indication of our commitment and we will continue to rely on this commitment when it comes to key markets in Southeast Asia such as Indonesia, whether we can attend in person or not," he concluded.