General Catalyst, a venture firm from Silicon Valley managing over $43 billion in assets, has revealed plans to invest $5 billion in India over the next five years, marking a swift expansion into India’s startup sector, nearly two years after its merger with local firm Venture Highway.
This pledge, announced at the India AI Impact Summit in New Delhi, focuses on startups in AI, healthcare, defense technology, fintech, and consumer technology. This represents a substantial increase from the previous $500 million to $1 billion allocated for India.
As the world’s most populous nation with over a billion internet users, India is emerging as a prime AI investment destination. New Delhi aims to attract more than $200 billion in AI infrastructure investments over the next two years, with summit participants including OpenAI, Anthropic, and Google.
General Catalyst CEO Hemant Taneja expressed that Indian founders are well-positioned to develop technology for large markets, stating, “India will build the next generation of global platform companies.”
General Catalyst sees India’s greatest AI potential in practical, large-scale applications rather than experimental models, citing the country’s digital infrastructure, sizable domestic market, and extensive talent pool.
This initiative coincides with India’s growing AI ambitions. At the summit, Adani Group and Reliance Industries, led by Mukesh Ambani, announced plans to invest over $200 billion for AI data center infrastructure. OpenAI has partnered with Tata Group’s TCS to establish a 100-megawatt AI data center, expanding its Stargate project. Additionally, companies like Amazon, Google, and Microsoft have declared major investments in India’s cloud and AI sectors.
General Catalyst is expanding its Indian portfolio in areas such as fast delivery e-commerce, health tech, and deep tech, with investments in Zepto, PB Health, Raphe, Jeh Aerospace, Pronto, and Ayr Energy.
“This investment allows us to operate at a different scale in India,” said Neeraj Arora, General Catalyst’s CEO for India, the Middle East, and North Africa. The firm aims to support companies from early stages to public markets.
General Catalyst is creating a framework to boost large-scale AI adoption in India’s key sectors, aiming to transition pilot projects into comprehensive implementations. Its General Catalyst Institute is fostering government-industry collaborations in the region.