Matrix Partners India is a subsidiary of US venture capital (VC) firm Matrix Partners, which has backed unicorns such as Ola and Razorpay, according to the company’s filing with the US Securities and Exchange Commission.

The media reported that Matrix was looking to raise a $400 million Indian fund last May. The fund will be the largest ever for the venture capital firm.

Matrix’s fundraising plan comes after Sequoia Capital announced closing a new $2.85 billion fund focused on startups in India and Southeast Asia. Of the $2.85 billion, the venture capital firm said it would invest $2 billion in Indian startups. The $2.85 billion funds are also Sequoia’s largest ever in the region.

Earlier this year, venture capital firms Accel and Elevation Capital also closed their largest-ever India-focused funds.
Elevation Capital, which backs the likes of Swiggy, Meesho, Paytm and Unacademy, has provided $670 million in funding for Indian startups. Meanwhile, Accel raised $650 million in March through a fund set up specifically for Indian startups. The huge fundraising has eased fears of an impending funding winter for the Indian startup ecosystem.

The valuations of venture capital firms’ Indian tech portfolio companies have grown exponentially over the past decade, driven by accelerating digital adoption and rising consumer incomes.

As a result, most of Matrix’s bets in India have also become lucrative, especially in the past two years. For nearly two decades, Matrix has been a prolific venture capitalist in India and has backed up to eight unicorn companies in India. According to Tracxn Technologies, six out of eight unicorns have joined the coveted club in the past two years.