Microsoft's VC arm M12 opens India office in Bengaluru, to focus on B2B

M12, Microsoft’s venture fund, announced its local presence in India with the opening of an office in tech-hub Bengaluru, its fifth one globally after San Francisco, Seattle, Tel Aviv and London. The firm will pursue investment opportunities across the region, focusing on Business-to-Business (B2B) software start-ups in the sectors such as applied artificial intelligence (AI), business applications, infrastructure and security.

M12 seeks to invest in disruptive enterprise software startups in Series A through C funding stages, targeting both local and cross-border solutions.

M12 has already been remotely investing in India since 2019. Its portfolio includes category leaders such as healthcare technology startup Innovaccer and Noida-based logistics SaaS startup FarEye. FarEye secured $25 million in Series D funding in April, led by M12.

Innovaccer, that has offices in both India and the US, provides intelligent care application modules for over 25,000 healthcare providers across 1,000 practice locations globally. The firm raised $11 million from M12 as a part of its Series B funding early last year. FarEye secured $25 million in Series D funding in April, led by M12, to enhance the platform’s predictive capabilities and for expansion in Europe, Asia Pacific region and the US.

"Typically, we see the greatest hurdles in a startup’s journey as they scale from local success to global challengers, and then again when they go on to become category leaders. Both inflection points require specific and deep organizational strength, proven talent, go-to-market partnerships, and global investors," said Abhi Kumar, M12's India Lead in a statement. "M12 is proud to be co-located in the region, and to bring experience and resources that will help startups successfully navigate these inflection points.”

Kumar said, setting up an office was a logical step forward in M12's commitment to India's startup ecosystem. "Having a team on the ground in India makes the value we add more accessible and tangible," he said.

The fund also plays the role of an "enabler" as it helps portfolio companies to sell alongside Microsoft’s world-class sales teams globally. "We provide the right resources to scale - not just the capital, but also the M12 team and the power of Microsoft, to accelerate growth for portfolio companies," said Kumar.

The fund's first check into a company generally in the range of $2-10 million and preference for being on the higher end of that range with meaningful ownership, Kumar added.

The Bengaluru office will join the office network that includes San Francisco, Seattle, London, and Tel Aviv.

Since its founding in 2016, the VC arm has invested in 90 companies. M12 investors also take board seats as part of their investments to provide founders with active support and engagement.