It’s like PE’s are pouring money into the Indian market, especially for startups, like anything, as after China, Singapore and Japan based investors, Silicon Valley based seed fund and startup accelerator 500 Startups is in the process of raising $10-20 million (Rs 60cr- Rs 120cr) for its India fund Startupwallah, which will offer $50,000-100,000 (Rs 30-60 lakh) to per Indian startup in the exchange of 7% equity stake. Statupwallah will be launched in mid 2015.
"We have to be plugged into the local system. Our regional funds will help achieve that," said Aerin Lim, director of investor relations at 500 Startups.
So far the 500 Startups has invested in 30 Indian startups including a personalisation platform for online businesses, and marketing firm ZipDial, which was acquired by Twitter in January. The 500 Startups, as part of its global fund, has been investing in India since 2011.
The company has infused money into over 1,000 startups across 50 countries since 2010. In the recent past it has set up a series of microfunds in Asia, these include a $15-million South Korea fund called 500 Kimchis and a Southeast Asia fund called 500 Durians. And the firm is currently raising about $10 million for its Thailand fund called 500 TukTuks.
In its statement last year, Ms Kathrina Manalac, partner at YCombinator, said the accelerator wants to bring the famed Startup School, where prospective entrepreneurs can get practical advice from successful founders and investors, to India.