Venture capital fund General Catalyst is making bold moves in India and has lately announced plans to invest up to $1 billion in Indian startups over the period of next three years. It is well-known for backing companies like Zepto, Spinny and Cred as well as it sees India as a land of opportunity in sectors like fintech, manufacturing, healthcare, energy transition, artificial intelligence (AI) and defence.

CEO Hemant Taneja believes India is on the verge of becoming a global leader in innovation. He highlights two areas where India has the potential and it is AI as well as the manufacturing sector. India could drive AI breakthroughs with its talented workforce and growing expertise.

The focus of General Catalyst is on defence technology and it sees a growing need for AI-driven solutions to strengthen democracies like India, the US and Europe. Taneja added that the company is eager to strengthen similar innovations in India while the company is already investing in defence startups abroad.

The integration of a seed-stage investment platform Venture Highways has strengthened the presence of General Catalyst in India. The move gives the firm greater scale and also positions it to capitalize on the booming entrepreneurial ecosystem. Taneja is optimistic and noted that India’s economic growth and attractive public market valuations are drawing more global capital into the private sector.

The billion-dollar plan of General Catalyst signals a strong vote of confidence in India’s potential. It is a promising time for Indian startups and General Catalyst seems ready to be part of this transformative journey.