In a significant move highlighting growing confidence in the Indian startup ecosystem, US-based venture capital firm FinSight Ventures is gearing up for a major investment push in the country. The firm has outlined a strategic plan to deploy between $150 million and $160 million over the next two to three years, with a sharp focus on the fintech and commerce sectors.
A Balanced Focus on Fintech and Commerce
Pavel Gurianov, Principal and Head of India Investments at FinSight Ventures, revealed that the firm intends to split its capital allocation evenly, with a 50-50 focus between fintech and commerce. This targeted approach comes as the firm looks to deepen its commitment to the Indian market, which it entered back in 2019.
Since its market entry, FinSight has already invested approximately $50 million across 16 Indian companies. Its portfolio includes notable names such as payments giant Razorpay, healthtech platform MediBuddy, auto marketplace CarDekho, matchmaking service Betterhalf, and housing finance company Easy Home Finance.
Primary Investments and Secondary Market Plays
The firm's strategy is twofold. Firstly, it plans to write large primary cheques of $30-40 million each in 3-4 new companies. Concurrently, FinSight will actively scout for opportunities in the secondary market, aiming to purchase existing stakes from early investors or employees.
Gurianov emphasized a disciplined approach to these secondary deals. The firm evaluates every potential investment with a clear exit strategy in mind, building financial buffers to account for macroeconomic volatility. "The secondaries business is purely about exiting, not just simply about investing," he stated, noting that FinSight has walked away from deals where valuations were not aligned with their return expectations.
Confidence in India's Market Liquidity
A key factor driving FinSight's increased commitment is the unique liquidity depth of India's public markets compared to other emerging economies. Gurianov pointed out that this liquidity is crucial for eventually facilitating successful exits for venture-backed companies. "We only decided to build presence in India because India has liquidity, which is not seen anywhere else," he remarked.
While acknowledging that the journey to an IPO can be longer in India as companies "grow with the market," he expressed confidence in steady compounding returns. The firm is currently not looking to sell its existing stakes, opting instead to "double down" on its current portfolio companies.
FinSight, which invests from an evergreen fund of $650 million and has global investments in companies like Bumble and Palantir, also acts as a limited partner (LP) in Indian early-stage funds such as Speciale Invest and Sparrow Capital. Although there are no immediate plans to raise an India-specific fund, Gurianov indicated that the firm is comfortable writing cheques that are 50-60% larger in India due to its on-ground familiarity and confidence in the market's long-term potential.
This renewed focus from FinSight Ventures arrives amid a robust year for India-focused fundraises. According to an Inc42 Datalabs report, funds worth $9 billion were launched for Indian startups in 2025 (through September 28). Other global and local firms, including Accel, Elevation Capital, Nexus Venture Partners, A91 Partners, and Blume Ventures, have also closed significant new funds, signaling sustained investor appetite for India's growth story.
