General Catalyst and Venture Highway Join Forces to Boost Investments in India
General Catalyst, a renowned Silicon Valley venture capital firm, has announced a strategic partnership with Venture Highway, an Indian venture capital firm, aiming to significantly expand its investment footprint in India. This collaboration includes plans to inject between $500 million to $1 billion into the Indian market over the next three years, as revealed to TechCrunch.

General Catalyst, a renowned Silicon Valley venture capital firm, has announced a strategic partnership with Venture Highway, an Indian venture capital firm, aiming to significantly expand its investment footprint in India. This collaboration includes plans to inject between $500 million to $1 billion into the Indian market over the next three years, as revealed to TechCrunch.
Venture Highway, known for its investments in prominent startups like Meesho and Moglix, has been in discussions with General Catalyst since January. The merger will enable General Catalyst to implement a multi-stage investment strategy in India, targeting both early- and growth-stage startups across various sectors. Neeraj Arora, the founder of Venture Highway, and Priya Mohan, a General Partner at the firm, shared these insights in an interview with TechCrunch.
Having raised $78.6 million for its second fund in 2020, Venture Highway has primarily focused on early-stage investments. However, with the new collaboration, the firm plans to expand its scope to incubating startups. Mohan emphasized, "Our vision is to be part of building a number of companies that will not only go public but also be needle-moving for the economy."
Arora, who previously served as the Chief Business Officer at WhatsApp and played a pivotal role in its acquisition by Meta, indicated that General Catalyst aims to deploy substantial capital in India. "We plan to invest between $500 million to $1 billion in India over the next three years," he stated.
This strategic move positions General Catalyst among the leading venture capital firms in India, alongside Lightspeed, Accel, Elevation, and Nexus, which have each raised significant funds for their recent investments. Peak XV Partners (formerly Sequoia India and Southeast Asia) leads the market with a $2 billion fund allocated for Indian investments.
Notably, General Catalyst will not acquire Venture Highway's existing portfolio but will treat these companies as part of its broader investment network. Hemant Taneja, CEO of General Catalyst, commented, "We want to support them the same way we support any of our companies in India or anywhere else in the world."
Arora highlighted the strategic timing of the merger, stating, "We could have gone out and raised more capital. That was one of the options on the table. But thinking from first principles, when we think about the opportunity that is in India today, and what our ambitions are, it made sense for us to join hands with General Catalyst."
India has emerged as one of the fastest-growing major economies globally, with a GDP growth rate of 8.2% in the latest fiscal year. Favorable policy changes have spurred growth across various sectors, attracting significant investments from global giants. Over the past five years, investors such as SoftBank, Tiger Global, Peak XV, Lightspeed, and Accel have poured approximately $100 billion into Indian tech startups, witnessing returns as many of these firms go public. However, Tiger Global's Scott Shleifer remarked that "returns on capital in India have sucked historically."
General Catalyst is not new to the Indian market, having invested in the country for over a decade. Its portfolio includes notable companies like CRED, Spinny, and Orange Health. The firm recently co-led a funding round with Indian conglomerate Tata for Alsym Energy, a company developing non-flammable rechargeable batteries.
Taneja foresees more collaborations with Indian conglomerates, noting, "I believe that many of the conglomerates in India are very entrepreneurial and will play a significant role in the growth opportunity of India." He further added, "When you’re transforming industries, no matter where you are in the world, you have to team up with the industry leaders."
This announcement follows a similar strategic move by General Catalyst in Europe last year, where the firm merged with Berlin-based venture firm La Famiglia. Taneja declined to comment on whether this model will be replicated in other markets.