The world's second largest internet market is the focus of an investment by the company.
According to a source familiar with the matter, the Silicon Valley-based venture capital firm has earmarked $500 million to back Indian startups.
People familiar with the matter said that the firm, which led a funding round in the Bengaluru-based coin exchange, is looking to hire for several investment roles in the country.
Several partners at the firm, including Seema Amble and Sumeet Singh, have engaged with several Indian startups in recent months, people familiar with the matter said, requesting anonymity as the matter is private.
The firm, which in January said it had raised $9 billion for its venture, growth and bio funds, is looking at investing in an Indian startup that operates an opinion sharing platform at a valuation of about $250 million, one person said. Another person said that it has engaged with a Bengaluru-headquartered early-stage fintech.
It would be the latest high-profile investor to become involved in India if the firm goes ahead with the plan. It didn't reply to the request for comment.
The firm has been looking at India for a long time. In a talk five years ago, a16z co-founder and general partner said it was extremely tempting to back startups in emerging markets. It was difficult for a venture fund to expand to more countries. Venture capital is a very hands-on process of understanding the people you are working with for both evaluating the company and work with the company.
If it continues to be a hands-on business, then there is a problem of geographic remoteness, which is if I am not present in another geography. Firms have been trying to staff local teams. If the local team is really good, then they can easily leave and run their own firms. They stay working for me if they are bad.
Scores of firms, including Bessemer Venture Partners, General Catalyst, Insight Partners, Dragoneer, D1 and Bodhi Tree have increased the pace of their investments in the world's second most populous nation.
Several of their peers/rivals, including Sequoia, Lightspeed and Accel that have operated in India for over a decade, have either raised new country specific funds in recent months or are in the process of raising a new fund. Lightspeed India Venture Partners is looking to raise over $500 million for its fourth India fund.
SoftBank, Alpha Wave Global and Tiger Global have doubled down on India. SoftBank alone invested more than $3 billion in Indian startups last year and plans to invest up to $10 billion this year.
Scores of investors, including Coinbase, Sino Global, and FTX, have engaged with multiple startups in the country in recent weeks, according to people familiar with the matter.
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