Series B

Series B is the second major institutional round. By this point, the company has a proven business model, significant revenue, and clear evidence of scalability. Series B capital funds aggressive growth: entering new markets, building out the team, scaling sales and marketing, and sometimes making strategic acquisitions.

Series B investors are often a mix of existing Series A investors exercising pro-rata rights and new institutional investors (often US-based growth funds looking at India). The diligence at Series B is more intense — detailed financial modeling, customer cohort analysis, competitive landscape assessment, and management team interviews.

The distinction between Series B, C, and growth rounds becomes blurry — the labels matter less than the company's growth stage and use of capital.

Indian Series B rounds are increasingly attracting global growth funds: Tiger Global (selective post-2023), General Atlantic, Norwest Venture Partners, and US-based crossover funds for companies demonstrating international traction. Indian companies with $5–20M ARR and international revenue can raise Series B from global funds at higher valuations than purely India-focused VCs can support.

Post-2022, many Indian Series B companies had their valuations reset significantly. Several 2021 Series B companies at $100M+ valuations raised follow-on rounds at $40–60M valuations in 2023–2024.