ePlanet plans $500-m fund for India, China markets

BANGALORE: Early stage-focused venture capital firm ePlanet Ventures is planning to raise its second global fund worth $500 million in the next three months. With the VC space getting hotter in India, the firm sees huge opportunity in this market.

Chandrasekar Kandasamy, director, ePlanet Ventures, said: ���The markets are hot in India and China and a significant portion of the fund will be used in these countries. We are looking at areas like technology in healthcare services, autocomponents, hospitality apart from IT and internet.������

ePlanet has now set up offices in Bangalore and New Delhi to focus on the emerging Indian market. ePlanet���s first $650-million fund, in affiliation with Draper Fisher Jurvetson, made just one investment in India ��� in Bangalore-based online DVD rental company Seventymm. However, its China track record includes big names like BAIDU, the Chinese search engine, flat-screen delivery commercial advertiser Focus Media, Kong Zhong and Chinese handset designer Long Cheer.

Mr Kandasamy said ePlanet will be looking to invest in the range of $2 million to $20 million in companies in the country. While the average deal size could be $9-10 million, there could a few late stage investments as well. While the Indian market may be getting overheated, ePlanet believes ``there is still a lot of opportunity in the early stage since there are few players and less money in the below $5 million category.������

ePlanet is looking at investments in the US, Europe and Asian countries including India, China, Korea and Japan for its second fund.