Sandeep Singhal, one of three co-founders of Nexus Venture Partners, is leaving the venture capital firm that had thus far managed to retain its top team even as several peers split over the past decade.
The development, first reported by Moneycontrol and also carried by other publications citing a letter to Nexus’s Limited Partners, means he will not be involved in the sixth VC fund.
This would be the biggest move in the Indian venture capital industry this year.
Singhal had co-founded Nexus Venture Partners around 15 years ago along with Suvir Sujan and US-based Naren Gupta. The trio led the VC firm to be one of the first among the Indian peers to cross $1 billion in assets under management.
Previously, Singhal co-founded and led Medusind Solutions, a healthcare outsourcing company in India. He had also co-founded early-stage investment firm eVentures India in 1999. The firm had some notable exits including CustomerAsset (acquired by Firstsource), Mentorix Solutions (acquired by Lionbridge) and MakeMyTrip (sold to SAIF Partners).
At Nexus, he is active in enterprise software, healthcare and impact investments. He sits on the boards of Eka, Intello Labs, CrelioHealth, Lybrate, Maximl, Mayadata, Pando, Sedemac, Suminter and Uniken. Some of the VC firm’s successful exits include Netmagic Solutions (acquired by NTT) and dlight (sold to Shell).
An email query to Nexus Venture didn’t elicit any response.
Moneycontrol said he has not been making fresh investments for the last few years and was involved in managing existing portfolio companies. This should not disturb the existing investments by LPs in the Nexus funds.
Private equity and venture capital funds have a clause linked to critical team members called ‘key man’. If they quit the firm, the LPs have the option to hold back on putting already committed money. However, this may not be triggered in some cases if the persons have distanced themselves from existing funds or have clearly communicated their intention not to be involved in the future funds.
While some alternative investment funds like WestBridge also saw their co-founder hang up their boots, in the VC ecosystem there have been mostly splits in the ranks. Old VC fund houses like Sequoia, Matrix, Helios, SAIF (now Elevation Capital), Kalaari and Norwest, among others, have been senior executives move to float different VC funds.