Nexus India to invest in two Hyderabad firms

Mumbai-based Nexus India Capital said it plans to invest in two Hyderbad, India-based companies in early 2009.

In August, Nexus India Capital said it has closed a second early stage fund of Rs 1,078 crore ($220 million) to invest startups in clean technology, as well as consumer, business services and media sector (see Nexus India Capital closes $220 million fund). 

The venture capital firm is now narrowing down a list of six companies for investments of $500,000 to $7 million in the first round, according to the Business Standard. Nexus India typically backs six to eight entrepreneurs a year.

Previous investments include LED designer d.light design (see What economic slowdown?), organic farming company Suminter India Organics, and engine efficiency developer Sedemac Mechatronics (see Cleantech cash piles up in Israel). 

The firm is focused on investments in software, hardware systems, health care, pharmaceuticals and biotechnology, alternative energy, clean water and sustainable agriculture.

“In all, we may end up doing six to 10 investments in India during next year,” director Sandeep Singhal told the Business Standard.

Cleantech venture capital investment is growing in excess of what some have called the traditional “Hindu rate of growth” of 2 percent to 3 percent per year to the current 8 percent to 9 percent, according to investors (see Think different about cleantech in India and China, say experts.)

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