Venture capital firm General Catalyst, based in Silicon Valley in the United States, has made a significant move to expand its presence in the Indian startup ecosystem by acquiring New Delhi-based early-stage investor Venture Highway. The acquisition is part of General Catalyst’s strategic plan to deploy a substantial capital of USD 500 million to USD 1 billion in early-stage and growth capital investments in Indian startups through the newly formed entity, General Catalyst India.

The newly established General Catalyst India entity will focus on supporting both early and growth-stage startups in India. Hemant Taneja, the chief executive of General Catalyst, expressed his enthusiasm about the acquisition, emphasising the combined capabilities of the two firms in fostering effective and hands-on support for Indian startups. Taneja also highlighted the intent to bring General Catalyst’s co-creation capabilities to India.

Venture Highway, co-founded by Neeraj Arora in 2014, the former chief business officer at WhatsApp, and co-founder Priya Mohan, has made investments in notable Indian startups such as social-commerce platform Meesho, B2B e-commerce platform Moglix, and HR-tech startup BetterPlace. They raised USD 78.6 million in the second round of funding in 2020, further solidifying their presence in the Indian startup ecosystem.

General Catalyst boasts a global asset management portfolio exceeding USD 25 billion. The firm has previously supported well-known startups like graphic design platform Canva, travel marketplace Airbnb, and fintech giant Stripe. In India, General Catalyst has backed more than a dozen startups, including fintech firm CRED and used-car marketplace Spinny.

The move comes at a time when several other VC firms, including Accel and Nexus Venture Partners, have raised substantial funds over USD 500 million each dedicated to investing in the Indian market. General Catalyst cited India’s increasing economic, political, and strategic influence in the global landscape, noting the unique cultural, consumer, and structural aspects that require a deep level of understanding, beyond just numerical analysis.