Sequoia, one of the world’s largest venture capital firms, is on the verge of finalizing its first deal in India and the broader Asia Pacific region since its split with former partners, according to sources familiar with the matter. The firm is in advanced discussions to back Vance, a cross-border payments startup based in Bengaluru.
This potential deal would mark Sequoia’s first investment since the split with Sequoia India and Southeast Asia last year. The former Sequoia unit has rebranded as Peak XV Partners. Additionally, Sequoia also parted ways with its China unit, now known as HongShan, amid geopolitical tensions between the US and China.
There are indications that all three firms – Sequoia, Peak XV Partners, and HongShan – are exploring opportunities in each other’s territories. HongShan is reportedly seeking deals in Europe and North Asia, while Peak XV Partners has established a presence in the US market. The firm even invested in an Australian startup last year.
Sequoia’s decision to split from its India and China units was described by Sequoia head Roelof Botha as a crucial moment for the company. Botha emphasized that it was a strategic move that would have long-lasting consequences. The UK team, which is part of Sequoia US, is considering leading a funding round of $30-32 million in Vance.
Vance, supported by investors like Y Combinator and Hummingbird, offers a financial services app tailored for Indians residing abroad. The app allows users to send money to their loved ones in India and invest in Indian stocks and mutual funds. It is reported that Vance processes nearly $1 billion in annualized payments.
Both Sequoia and Vance have declined to provide comments on the potential deal at this time. The partnership between Sequoia and Vance could signal a new chapter in the firm’s investment strategy in the Asia Pacific region, particularly in India. This move may also enhance Vance’s position in the cross-border payments market and strengthen its offerings for Indian expatriates.
