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Sequoia is close to closing its first deal in India and the broader Asia-Pacific region since parting ways with previous partners, according to four sources familiar with the matter.
The investor, one of the world’s largest venture capital firms, is in advanced talks to provide support VanceA Bengaluru-based cross-border payments startup, the sources said, requesting anonymity as the deliberations are ongoing and private.
If the deal goes through, it will be the company’s first since its separation from Sequoia India and Southeast Asia in the middle of last year. The former Sequoia unit was later rebranded as Peak XV Partners.
Sequoia also separated from its famous Chinese unit, run by Neil Chen, amid growing geopolitical tensions between Washington and Beijing. The former Chinese unit was rebranded as Hongshan.
The three companies show signs of entering each other’s territories.
The Financial Times reported earlier this week that Hongshan is seeking deals in Europe and North Asia as it struggles to deploy its $9 billion portfolio. Meanwhile, Peak XV Partners has set up a team in the US and intends to invest in US startups, according to separate sources familiar with the company’s plans. The company invested in an Australian startup last year.
“Our teams in India and China have built amazing businesses,” says Roelof Botha, President of Sequoia. He said At a recent Fortune conference. “But the decision to separate from the India and China units is among the difficult moments – one or two decisions a year that have huge consequences for the company,” Botha said. “(It) is not a decision that we can step back from after two years and say: Oops, sorry, we have to go back to being a company.” one.
Sequoia’s UK team — which is entirely part of Sequoia US — has proposed leading a $30 million to $32 million funding round at Vance, some sources said.
Vance, which counts Y Combinator and Hummingbird among its backers, runs a financial services app targeting Indians living abroad. Through the app, they can send money to family and friends in India as well as invest in Indian stocks and mutual funds.
The company processes nearly $1 billion in annual payments, according to one source.
Sequoia and Vance declined to comment Friday.
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