Nexus Venture Partners: Bridging India and Global Tech Innovation

Nexus Venture Partners: Bridging India and Global Tech Innovation

Nexus Venture Partners, founded in 2006, distinguishes itself as a pioneering venture capital firm with a unique cross-border strategy, investing in both Indian and US-based technology companies. With approximately $2.6 billion in assets under management across its funds, Nexus is known for its "product-first" and "high-conviction" approach, typically serving as the first institutional investor in Seed and Series A rounds. Its impressive portfolio includes Indian unicorns like Delhivery, Postman, and Unacademy, reflecting its strong ability to identify and scale market leaders. Nexus's integrated team across Menlo Park, Mumbai, and Bengaluru enables it to provide global best practices and market access to its portfolio companies, making it a critical player in fostering innovation at the intersection of the two largest startup ecosystems.

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I. Investment Activity & Scale

1.     Funds Raised & Assets Under Management (AUM): Nexus Venture Partners has approximately $2.6 billion in capital under management. Its seventh venture capital fund, Nexus Ventures VII, closed at $700 million in February 2023, bringing its total AUM to over $2 billion at the time. This fund is specifically dedicated to backing disruptive companies in AI, SaaS, FinTech, and commerce across India and the US.

2.     Number of Investments: Nexus Venture Partners has supported nearly 200 startups in India and the US, with over 100 startups in India alone. The firm is generally included in 13-24 deals every year, demonstrating consistent activity. Unicorn Nest reports 176 investments in India as of May 2020 (total investments 368 globally).

3.     Investment Stages & Focus: Nexus is primarily an early-stage focused investor, typically being the first institutional investor at Seed and Series A rounds. Their investment size ranges from $500K to $10 million and they participate in follow-on rounds. The firm's focus areas include enterprise software, SaaS, FinTech, AI, and consumer internet, with a particular emphasis on "product-first" companies. Jishnu Bhattacharjee, Managing Director at Nexus Venture Partners, stated, "We seek to partner with exceptional founders building product-first companies across AI, SaaS, fintech, and commerce."

4.     Capital Deployed (Estimated/Public): The $700 million raised in their latest fund signals continued significant capital deployment. Recent investments include companies like AI infrastructure firm TensorWave ($100 million), AI assistant startup FurtherAI ($5 million), and Neysa ($30 million Series A). These illustrate varied ticket sizes depending on the stage.

II. Portfolio Quality & Success

1.     Unicorns & Soonicorns (Valued >$1B): Nexus Venture Partners has a strong track record of backing unicorns, including Delhivery, Postman, Unacademy, and Zepto. Unicorn Nest reports 12 unicorns in their global portfolio.

2.     Notable & Influential Portfolio Companies: Beyond unicorns, other influential companies in their Indian portfolio include Snapdeal (early investment, significant e-commerce player), Infra.Market (construction material marketplace), Hasura (open-source GraphQL engine), CapGrid (B2B manufacturing), and Snabbit (quick service app).

3.     Survival Rate & Growth: The firm's focus on "high-conviction" bets and active engagement with portfolio companies suggests a strong survival rate and a high proportion of companies achieving significant growth. Many of their investments have successfully navigated multiple funding rounds.

III. Exits & Returns (Proxy for ROI)

1.     Number of Successful Exits: Nexus has a notable number of successful exits through IPOs, M&A, and secondary deals. As of May 2020, Unicorn Nest reported 35 exits. Sandeep Singhal's profile mentions successful exits like Netmagic Solutions (acquired by NTT) and dlight (sale to Shell) from his time at Nexus.

2.     Type of Exits: Exits include public listings (e.g., Delhivery, Zomato, MapmyIndia were part of their public portfolio, though Zomato was an indirect exit through an early investment in Info Edge), strategic acquisitions, and secondary transactions. VCCircle reported in April 2024 on Nexus exiting a 15-year-old technology bet via a secondaries deal.

3.     Notable/Large Exits (Estimated Multiples if Available): While specific ROI figures are often private, the IPOs of companies like Delhivery signify substantial liquidity events. The early investment in Postman, which became one of India's most valued SaaS unicorns, would also represent a significant return for the firm. Co-founder Naren Gupta (late) was noted to have personally overseen the growth of Postman and Unacademy, indicating strong value addition leading to these successes.

4.     Distribution of Capital to LPs: The continuous raising of large new funds, such as the $700 million Fund VII, is a strong indicator of successful capital distribution to LPs from prior fund performance.

IV. Ecosystem Impact & Reputation

1.     Thought Leadership & Industry Influence: Nexus Venture Partners is recognized for its thought leadership, particularly in cross-border innovation. Their "one fund one team" approach across the US and India allows them to share global best practices. As Nexus stated, "With one of the major developer bases in the world, India emerges as a critical invention and talent hub for global companies pouring AI and software uprisings."

2.     Founder & Entrepreneur Feedback: Nexus is highly regarded by founders for its deep expertise, hands-on support, and global perspective. The firm's partners, many of whom are former entrepreneurs, resonate well with founders. Upon the passing of co-founder Naren Gupta, a Nexus spokesperson stated, "He was a mentor and a close friend to all of us at Nexus and we will miss his passion, caring nature and towering intellect." Founders like Kunal Bahl (Snapdeal) and Swapnil Jain (Observe.ai) have publicly lauded Gupta's supportive nature.

3.     Follow-on Funding Attraction: An investment from Nexus often validates a startup's potential, making it significantly easier to attract subsequent funding rounds from other domestic and international investors due to the firm's credibility and strong due diligence.

4.     Contribution to Policy/Regulatory Environment: While not directly engaging in policy, Nexus's focus on building global product companies out of India contributes to the nation's reputation as an innovation hub, indirectly influencing policy discussions around tech and entrepreneurship.

V. Operational & Strategic Elements

1.     Team Strength & Experience: Nexus boasts a highly experienced team of partners and investment professionals with strong entrepreneurial and operating backgrounds. The firm operates as a single, integrated team across its US and India offices. Sameer Brij Verma, a Managing Director, has led investments in over 75 companies and is a recognized "40 under 40 Alternative Investment Professionals" in India.

2.     Investment Thesis Evolution: The firm's investment thesis has consistently evolved with market trends, from early bets on enterprise solutions and cloud computing in 2008 to current focuses on AI, SaaS, and FinTech. They have a history of investing in "futuristic markets that may not [yet] be proven," demonstrating a proactive and visionary approach.

3.     Global Network & Synergies: Nexus's distinct "one fund, one team" model operating across the US and India is a significant strategic advantage. It allows them to bridge the two ecosystems, providing Indian companies with access to global markets, talent, and best practices, and offering US companies access to India's vast talent pool. As Nexus highlights on its website, this "uniquely positions us to assist entrepreneurs in building pathbreaking product-first companies in two of the most important technology startup ecosystems in the world—USA and India."

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Reflection

Nexus Venture Partners has played a foundational role in shaping India's startup ecosystem, distinguishing itself with a unique cross-border investment thesis since its inception in 2006. Its pioneering "one fund, one team" approach, operating seamlessly between Silicon Valley and India, has been instrumental in bridging the two largest tech ecosystems. This strategy allows Nexus to provide Indian founders with not just capital, but also invaluable access to global best practices, market insights, and follow-on funding networks, effectively enabling them to "build pathbreaking product-first companies." The firm's consistent ability to raise substantial funds, exemplified by its recent $700 million Fund VII, underscores deep LP confidence in its distinctive strategy and track record of delivering returns.

Nexus's portfolio speaks volumes about its foresight. Early bets on companies that later became unicorns like Delhivery, Postman, and Unacademy highlight their astute judgment in identifying disruptive potential. The focus on "product-first" companies across enterprise software, SaaS, and AI has positioned them at the forefront of technological innovation. As Jishnu Bhattacharjee noted, their goal is to partner with "exceptional founders building product-first companies," indicating a selective and high-conviction investment philosophy that prioritizes strong fundamentals. This approach, combined with their hands-on engagement, contributes significantly to the growth and eventual success of their portfolio companies, leading to meaningful exits through IPOs and strategic acquisitions.

The passing of co-founder Naren Gupta, a "stalwart in the global technology and entrepreneurial ecosystems," was a significant loss, yet the continued strength of the firm’s seasoned leadership team, including partners like Sameer Brij Verma, ensures continuity and expertise. The firm’s reputation among founders is robust, often cited for its mentorship and supportive nature. This positive sentiment is crucial for attracting the best entrepreneurial talent in a competitive funding environment.

Nexus's proactive evolution of its investment thesis, continually adapting to emerging technological trends like AI, demonstrates its long-term vision and commitment to staying ahead of the curve. By identifying "futuristic markets," Nexus not only secures promising investments but also helps to define the next wave of innovation coming out of India. Its contribution goes beyond mere capital; it's about fostering a globally competitive mindset among Indian startups, truly enabling them to scale and succeed on the international stage. Nexus Venture Partners remains an indispensable force in solidifying India's position as a global innovation hub.

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Reference List:

·       Equitypandit. (2023, March 1). Nexus Venture Closes $700 Million Funding for India, US-Based Startups. Retrieved from https://www.equitypandit.com/nexus-venture-closes-700-million-funding-for-india-us-based-startups/

·       GrowthJockey. (2025, April 24). Top 20 Venture Capital Firms in India 2025 | VC Funds. Retrieved from https://www.growthjockey.com/blogs/top-20-vc-funds-of-india

·       Inc42. (2023, March 1). Nexus Venture Partners Closes $700 Mn Fund To Invest In India, US Startups. Retrieved from https://inc42.com/buzz/nexus-venture-partners-closes-700-mn-fund-to-invest-in-india-us-startups/

·       India Green Ecosystem Snapshot. (n.d.). Nexus Venture Partners. Retrieved from https://www.india-ecosystem.tech/organizations/nexus-venture-partners

·       IndianVCs. (n.d.). Nexus Venture Partners - Investor Profile & Team. Retrieved from https://www.indianvcs.com/investor/nexus-venture-partners

·       Livemint. (2021, December 27). Nexus Venture Partners co-founder Naren Gupta passes away. Retrieved from https://www.livemint.com/companies/news/nexus-venture-partners-co-founder-naren-gupta-passes-away-11640580788575.html

·       Nexus Venture Partners. (n.d.). About. Retrieved from https://nexusvp.com/about/

·       Nexus Venture Partners. (n.d.). Companies. Retrieved from https://nexusvp.com/companies/

·       Nexus Venture Partners. (n.d.). Team. Retrieved from https://nexusvp.com/team/

·       OpenVC. (n.d.). Nexus Venture Partners | Investor Profile, Funding Criteria & Team. Retrieved from https://www.openvc.app/fund/Nexus%20Venture%20Partners

·       Plaksha University. (n.d.). Sameer Brij Verma. Retrieved from https://plaksha.edu.in/team-details/sameer-brij-verma

·       Unicorn Nest. (n.d.). Nexus Venture Partners – Investors Database. Retrieved from https://unicorn-nest.com/funds/nexus-venture-partners/

·       VCCircle. (2023, February 28). Nexus Venture AUM crosses $2 bn as seventh VC fund hits final close. Retrieved from https://www.vccircle.com/nexusventure-aum-crosses-2-bn-as-seventh-vc-fund-hits-final-close

·       VCCircle. (2024, April 8). Nexus to exit 15-year-old technology bet via secondaries deal. Retrieved from https://www.vccircle.com/nexusto-exit-15-year-old-technology-bet-via-secondaries-deal

·       YourStory. (2023, March 1). Nexus Venture Partners closes $700M fund to invest in India, US. Retrieved from https://yourstory.com/2023/03/nexus-venture-partners-closes-700-million-dollar-fund-delhivery-zomato