Sequoia China is planning to expand into Singapore. This move will put it in competition with Peak XV. Peak XV was formerly known as Sequoia India and Southeast Asia arm, but it rebranded as an independent firm in June 2023.
The newly named Chinese arm of Sequoia, HongShan, has already established an office in Singapore. It is actively seeking investment opportunities in startups located in the Southeast Asia region. On the other hand, Peak XV has also been involved in the Singapore market. It has provided support to several successful startups in the region, such as Grab, Sea, and Razer.
The competition between HongShan and Peak XV is expected to be intense. Both firms possess substantial financial resources and have a proven track record of successful startup investments. However, this competition is likely to benefit the startups in the region. They will gain access to more capital and expertise from two prominent venture capital firms.
As of now, it is too early to determine the exact outcome of the competition between HongShan and Peak XV. Nonetheless, it promises to be an intriguing dynamic to observe in the years to come.
Singapore has become a favored destination for Indian founders seeking to establish their businesses outside of India to avoid tax complications.
Similarly, there is speculation that Chinese entrepreneurs might also find Singapore appealing due to recent interventions by Chinese authorities affecting companies like Alibaba and various startups.
A spokesperson from Peak XV Partners expressed their strong and collaborative relationship with the HongShan team and their deep friendships with many partners. They welcomed the opportunity to collaborate with them in the future, believing that the potential for collaboration outweighs competition.
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