General Catalyst, a prominent Silicon Valley venture capital group, is strengthening its presence in India by merging with Venture Highway, a local venture firm, and allocating over $500 million for investments in the country. The combined entity will pursue a new multi-stage investment strategy, spanning early to growth-stage checks across industries, said Venture Highway founder Neeraj Arora and general partner Priya Mohan.
The deal, which was first reported by Truth Voices in January, will see Venture Highway, which has traditionally focused on early-stage investments, expand its remit to include incubating startups, a relatively new area in India. Mohan stated that their vision is to build companies that will not only go public but also have a significant impact on the economy.
General Catalyst plans to invest between $500 million to $1 billion in India over the next three years, according to Arora, who previously played a key role in WhatsApp’s sale to Meta. The allocation positions General Catalyst among the largest venture capital firms in India, alongside firms like Lightspeed, Accel, and Nexus.
The merger does not include the acquisition of Venture Highway’s past startup portfolio holdings, but General Catalyst will consider them part of its portfolio going forward. General Catalyst CEO Taneja stated that the firm wants to support the portfolio companies in the same way it supports its companies globally.
India, which has seen rapid growth over the past decade, has become a popular destination for venture capital firms. The country’s GDP grew by 8.2% in the fiscal year ending March, and favorable policy changes have spurred growth across industries.
