Fintech-focused venture capital firm QED Investors plans to invest $250–$300 million, from the recently raised $925 million fund, in India over the next five years, as it doubles down on one of its most important markets in the Asia Pacific region.
The firm has already deployed $220 million in the country since 2020, Sandeep Patil, Partner and Head of Asia at QED Investors, told Moneycontrol.
The renewed commitment comes amid global macroeconomic pressures—such as high interest rates and geopolitical uncertainty—that could weigh on startup funding and IPO momentum in 2025.
“India will continue to corner a large proportion of our investments,” said Patil. “We don’t have specific allocation targets for any one country, but India remains central to our Asia strategy. We’re also looking to deepen our presence in markets like Japan and Australia.”
QED is a global fintech-focused VC firm whose India portfolio includes notable startups like OneCard (FPL Technologies), Jupiter, Upswing, Refyne, and Financepeer. Globally, it has backed names such as ClearScore, Creditas, Credit Karma, Current, Flywire, Kavak, and Klarna.
India is one of QED’s key focus areas in the Asia Pacific. Of the $220 million it has invested in the region so far, more than 90 percent has been allocated to India. The rest went to other markets like Singapore and Indonesia.
As several global and domestic VC firms gear up to deploy capital after a cautious 2024, QED is also expanding its strategy beyond early-stage deals. The firm, traditionally focused on Seed and Series A rounds, is now actively eyeing Series B and C opportunities.
“We’re expanding our investments from just Seed and Series A to include Series B and C,” Patil said. “Given the current market dynamics, we’re seeing attractive opportunities at these later stages.”
The pivot comes after QED closed two major funds in May 2023: Fund VIII, a $650 million vehicle for early-stage bets, and Growth II, a $275 million fund for Series B to pre-IPO stage investments—bringing its total investable capital to $925 million.
While the Growth II fund was initially focused on follow-on investments, QED’s approach has now evolved to include new bets at later stages.
“This move is driven by what we call ‘clone war’ dynamics,” said Patil. “After a company receives Seed or Series A funding, we often see a number of clones emerge with similar business models. But at later stages—Series B or C—it becomes easier to identify which companies can truly scale and become generational businesses.”
QED plans to write cheques of $3 million–$20 million for early-stage investments, and $20 million–$40 million for growth-stage rounds.
While QED continues to be bullish on segments such as lending, neo-banking, and insurance, it is also exploring newer areas like embedded fintech and artificial intelligence.
Embedded fintech refers to the integration of financial services directly into non-financial platforms or workflows, allowing users to access these services without switching to separate apps or websites.
This surge in interest comes at a time when several VC funds have resumed fundraising in 2025 after a sluggish year. In 2024, India-focused VC fundraising hit a five-year low at just $2.7 billion.
But 2025 has brought renewed momentum, with Accel, Bessemer Venture Partners, A91, Venturi Partners, Cornerstone VC, and Prime Venture Partners all announcing new funds. Others, like Fireside Ventures, are also in talks to raise large pools of capital.
“India continues to be a very attractive geography for technology investments, given the country’s large total addressable market (TAM), stable GDP growth, rising middle class, and steady regulatory and government setup,” said Patil. “That provides a lot of assurance to investors. The 2024 IPO boom showed that robust public companies can be built in India, so I expect a lot of capital to continue flowing in.”
Still, with macroeconomic challenges looming, how the funding environment evolves in India over the coming quarters remains to be seen.
