On June 8, 2020, Hevo, a data solutions company, announced that it had raised $30 million in Series A funding from Sequoia Capital India and other investors.
This significant investment from Sequoia and other investors is a testament to Hevo’s ability to offer seamless data solutions to enterprises and the value that it offers to customers.
The funds will help Hevo expand its operations in India and the US and explore new opportunities in the data solutions market.
Hevo raises $30 million in funding from Sequoia Capital India, others
Hevo Technology Pvt Ltd is the company behind Hevo. This data pipeline automation platform enables real-time data integration from various sources such as databases, cloud applications, and SaaS tools. The company was founded in 2017 by Manish Jain, Mukul Kulkarni and Avinash Reddy.
In October 2020, Hevo raised a funding of $30 million from venture capital firm Sequoia Capital India along with investing partners Alteria Capital and Voltachey Capital. This investment marks the fourth round of fundraising which had previously raised over $8 million.
This latest investment will help support Hevo’s journey to becoming an industry leader in simplifying data migration while also allowing them to expand their market presence globally through investments in product development, international expansion, and further building out their talented engineering and product teams.
Overview of Sequoia Capital India
Sequoia Capital India is an investment firm founded in 2006. The firm invests in a diverse range of start-up companies, including Hevo. Hevo recently announced the closing of its
series B funding round, having raised US$30 million from Sequoia Capital India and other investors.
Sequoia Capital India is part of the global network of Sequoia funds that started with venture investments in California’s Silicon Valley over 45 years ago. Today, the company’s footprints span North America, Europe, India and Southeast Asia and extend to China – all with a mission to help founders turn imaginative ideas into enduring businesses. Over the years, Sequoia has invested in many successful and high-growth companies such as Apple, Oracle and Dropbox.
In India specifically, Sequoia has backed some of the most successful ventures such as Zomato and Ola Cabs. It has expertise in sectors such as technology products, healthcare services, financial services, and enterprise software. Its strategic leadership across multiple global markets since 1972 brings innovation to the Indian market. By supporting early-stage companies like Hevo – as part of its latest investment round – they are working towards building strong businesses that solve real-world problems on a larger scale.
Hevo’s Funding Round
Hevo, a data infrastructure platform, recently announced closing a $30 million funding round, led by Sequoia Capital India. The other investors included several other venture capital players, such as Matrix Partners and Hummingbird Ventures.
This is the largest funding round raised by Hevo, as it looks to expand its product offerings and scale its customer base. But, first, let’s look at the details of this funding round.
Details of the funding round
Sequoia Capital India has led the funding round of Hevo, with participation from existing investor Hummingbird Ventures. In addition, other undisclosed investors joined the round, raising the total capital to $30 million. Hevo stated that it plans to use the fresh funding to build its data infrastructure and expand its go-to-market initiatives.
Hevo provides an analytics platform that helps organisations leverage data from multiple sources for real-time performance insights by streamlining and automating data workflow processes. Founded in 2019 by Sourabh Agarwal and Aditya Singh, both IIT Kharagpur alumni, Hevo has more than 200 customers across different segments such as eCommerce, media & entertainment and financial services.
The current round values Hevo at an excess of $250 million compared to its previous valuation of $125 million in December last year. It is reported that over 90% of Hevo’s revenue is generated outside India with large clients including Spotify, OYO, Paytm Money and Quikr among others. Salt River Capital also participated in this fundraise, including equity and debt components.
Investors involved in the round
The funding round of $30 million in Hevo was led by Sequoia Capital India, with additional backing from Lightspeed India, Amplo and U-Cast. The investment seeks to fuel further growth for Hevo, which has become the go-to Data Platform for hundreds of companies worldwide.
Sequoia Capital India is a venture capital and private equity firm. It focuses on investments in early to late-stage startups in India and Southeast Asia’s internet, mobile, e-commerce, SaaS (Software as a Service), healthcare, and fintech sectors.
For over three decades, Lightspeed India has been at the forefront of providing capital and resources to entrepreneurs in India. With its position as a preeminent investor in technology markets worldwide and its deep experience working with startups at various stages of their life cycle across different continents, Lightspeed guides businesses through long-term sustainable success.
Among other investors is Amplo – a US based technology ‘M&A’ firm pioneering marketplace transactions between corporate buyers and VC funded technology companies from around the world. U-Cast is an early stage Hong Kong based venture fund focusing on investments in AI powered companies with massive growth potential.
This round firmly demonstrates that strong enterprises can be built enabling data driven decision making without barriers to entry for businesses of all sizes.
How the funding will be used
Sequoia Capital India has recently announced a $30 million funding round for Hevo, a data engineering and analytics platform. This infusion of capital will enable Hevo to fuel its international expansion, boost product innovation and strengthen its customer success operations. With the additional funding, Hevo aims to bring data powered business intelligence to more organisations across the globe.
The fresh funds from Sequoia Capital India boosts accelerator Paradigm’s total investment in Hevo to $35 million, with earlier investments by engineering firm NFX, EVP and Bvider Ventures also backed the company. The company has raised $42 million in funding so far.
At Hevo, we aim to empower organisations with data insights by simplifying their data engineering needs. With this round of investment, we plan to further enhance our end-to-end platform to help them reach new heights of innovation and success on a global scale. We
believe that with this exciting journey ahead of us we can make our solution accessible to many more businesses looking to make better decisions driven by reliable KPIs and real-time insights.
Impact of the Investment
The investment of $30 million by Sequoia Capital India, among others, in Hevo has had a major impact on the company.
Hevo is a data integration platform that enables businesses to transfer and analyse their data from different sources. This infusion of funds has allowed the company to expand its operations and further its product development.
Let’s take a closer look at the impact of this investment on Hevo.
Hevo’s growth plans
Sequoia Capital India led Hero’s $30 million funding round, and other investors included ET Global, BeeNext, EMVC, 3one4 Capital and angels from Japan and Europe. This investment will further the company’s mission to build the most comprehensive data integration platform.
Hevo has plans to use the funds to expand its sales and marketing efforts, grow its engineering team and develop new features for their offerings.
The product suite of pricing-accepting integrations with cloud-based services like Stripe, Adyen, Shopify, BigCommerce and many others has seen growing demand from customers using them for different business use-cases. Hevo plans to use this investment to increase customization capabilities useful in today’s competitive environment. The company also plans to further build out various automation capabilities that help customers increase operational efficiency while avoiding manual errors when managing business data flows.
Hevo is looking to expand on these efforts by hiring more professionals across engineering, product development & management, support teams and much more who will work together towards building integrations which help address small business’ various data needs. The increased budget also looks to continue setting benchmarks for robust security standards that have already been put into place with its application suite as it continues setting a standard within the industry that is tough to emulate with every passing day.
Impact on the Indian startup ecosystem
The investment of $30 million in Hevo by Sequoia Capital India is significant for the Indian startup ecosystem. This deal will be an important milestone to attract more investments in other startups within the country.
Hevo provides its customers with a platform to stream, transform and load data into analytics warehouses; thereby providing businesses with an easier, faster and secure way to manage data. Having Sequoia Capital India invest this amount into young startups gives a boost of confidence to entrepreneurs and potential investors in the Indian startup ecosystem. As investors invest more into businesses, more jobs will be created which further leads to economic growth and welfare in the country.
The investment from Sequoia Capital India will likely result in a snowball effect as other investors follow suit and increase investments in their respective startups or regions; therefore raising the overall value of businesses across India. In addition, the data solutions provider for enterprises – Hevo – has joined hands with some accomplished organisations like; Accel Partners, Venture Highway and RTP Global who are showing their trust by investing high amounts of money into it.
Overall, this investment has opened doors for many new opportunities within the Indian startup sector including access to more funding options. These technology advancements can help leverage future growth, recognition from global investors, and improvement of services provided by existing organisations. It is hoped that this move will spark even better engagements between venture capitalists and other budding organisations or leaders within India’s entrepreneurial scene in future times.
