IDG Ventures India Exec:To Set Up 2nd India Fund In Late 2010

BANGALORE – May 19, 2009 – Venture capital fund IDG Ventures India is likely to set up its second India-dedicated fund in late 2010 with a corpus of $250 million-$300 million, its chairman and managing director said Tuesday.

"Now, with the markets improving, and a stable political environment, we feel it is a very good time to invest in India," Sudhir Sethi told reporters at a news conference.

IDG Ventures sees a big investment opportunity in India from the launching of third-generation mobile phone services, with likely investments in startup companies being set up to support 3G operators, Sethi said.

Gaming and electronic commerce are other fields of interest for the fund, Sethi said.

It has already committed $60 million from the $150 million first India fund, Sethi said. The rest is likely to be invested in the next 18 months, he added.