NEA to Invest $200m over three years in India

by CXOtoday Staff    Feb 19, 2007

A booming telecom sector, opportunities for innovative technologies and India focused business models has attracted US based venture capital company, New Enterprise Associates to expand base in India.

NEA had to tap the Indian market with the government opening up skies for the BPO and KPOs to set shop here, a digital media, technology driven consumer finance and innovations in the rural/agriculture sector awaiting financers, to scale up.

The company plans to invest $ 200m in India in the next three to four years, according to a copy of the company presentation issued to the media during a press conference here today.

A section on the company’s investment strategy shows that NEA has historically invested in early stage/company building terms, proactively added towards venture growth equity and India and China. Most of the projects funded were into technology, healthcare, alternative energy verticals.

It now wants to invest upto 20 percent in communications, 20 percent into electronics, 22 percent in software, 26 percent in biopharma, seven percent in medical devices, healthcare 38 percent and two percent in healthcare services, the presentation says.

Macro trends such as move from analog to digital media, convergence of voice, data and video on a single IP infrastructure, increasing consumerism in the rural and urban areas, lagging energy supply and growth of the retail/agro sector have also influenced management decision to increase investments in India.

Peter Barris, managing director said, “We have been selectively investing in India for the last years, and believe India offers an attractive environment for venture investing.”

NEA has invested in 500 companies and has had 224 mergers that include Sasken, Telsima, Protostar and others. NEA 12, NEA’s most recent fund, became a 20% stakeholder and is one of the largest investors in NEA-Indo US ventures.