Norwest Venture Partners raises $4 billion fund to invest $250-300 million a year
The firm's total capital under management now stands at $18 billion.
Norwest Venture Partners has raised a new $4 billion fund, its largest ever. The firm’s total capital under management now stands at $18 billion.
Norwest plans to deploy a “significant” part of the fund in India, across value-added manufacturing, healthcare, pharma, financial services and consumer businesses. It said it will continue to invest in India at a pace of $250-300 million a year. The fund is global, so there is no specific allocation to India.
Norwest is a multi-stage investment firm that invests in early, growth and buyout opportunities in the US, India and Israel. In India, it has backed companies including Swiggy, Expressbees, Ofbusiness and Mintify. From its 17th fund of $3 billion, it has invested in companies such as Padmini VNA in automotive and JJG Aerospace, and further investments in these segments are at final stages.
The firm is celebrating its 20th year of investing in India. In the last two decades it has seen 30 exits from portfolio companies, 10 of which went public through IPOs.
The firm is adding value-added manufacturing and manufacturing-related services as an investment thesis. Niren Shah, managing director and head of India at Norwest, said this began over the last year and investment in it will continue to increase. Beyond manufacturing, Norwest is also focusing on healthcare, AI and deeptech, financial services and consumer businesses.
Shah described AI and deeptech as more of a venture theme, while most of the firm’s other investments are growth equity. Norwest made AI and deeptech investments from its last fund, including Pascal AI.
Norwest is also preparing its next cohort for IPOs. Five Star Finance, Veritas and Everbrands have filed for IPOs, and four more companies, including Ofbusiness and Mintifi, are in the process of appointing bankers. They are expected to file over the next six months.
Shah said Norwest “continues to be very bullish on India” and has developed a deep understanding of the market over time.
