Seed-focused venture capital firm Venture Highway is merging with Silicon Valley-based General Catalyst to lead the latter's India initiatives, marking a rare move where a firm has been absorbed by a larger one in the venture capital space.
"This merger unites one of the world's largest and most-respected platforms with a highly reputed Indian seed investment team," General Catalyst said in a statement. The two firms "seek to create one of the most powerful venture platforms to support the next generation of entrepreneurs in India".
Venture Highway is an early-stage VC firm based in Bengaluru, founded by former WhatsApp Chief Business Officer Neeraj Arora in 2014. It has written among the first checks for companies like Meesho, Moglix, BetterPlace and Chalo.
General Catalyst has been investing in India since 2019, backing marquee companies like Cred, Spinny, Orange Health. "Venture Highway takes our capabilities and commitment to a new level. There has never been a more exciting time for us to double down on India," it said. The two will focus on sectors such as healthcare, energy, manufacturing and financial services.
Such churn is rare in the venture capital space, where executives often leave large firms to start their own. Sequoia also pulled out of India last year, with the local team rebranding to Peak XV Partners.
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