US venture capital firm Matrix Partners has announced the rebranding of its China and India units, effective July 1—a move that likely stemmed from the growing divide between US and China.

Matrix Partners has renamed its China entity as MPC, a shortened version of Matrix Partners China, while retaining its original Chinese name. Matrix Partners India has been rebranded as DZ47. The original US entity will continue to use the Matrix Partners brand.

This rebranding exercise signifies greater independence for the firm’s China operations but does not represent a complete split from its international operations, unlike some US counterparts that have made their China operations independent due to geopolitical concerns:

• Sequoia was the first to initiate such a split, dividing into three separate firms in June 2023: HongShan in China, Peak XV Partners in India and Southeast Asia, and Sequoia Capital for the US and Europe.
• GGV Capital, formerly known as Granite Global Ventures, announced a similar move in September 2023 before officially spinning off its China operations in March this year. The original entity adopted the new brand Notable Capital, while the spun-off business was branded Granite Asia, managing GGV’s existing portfolio in Southeast Asia, China, and India.

Matrix Partners emphasized that this move underscores the localization efforts of its regional teams, which have operated independently from the start:

“Each team’s leadership has operated with separate decision-making and separate back offices from inception. The decision to rename is driven by a shared commitment to clarity in the marketplace, responsiveness to regional market dynamics and a continued focus on competing locally, which will benefit each organization’s respective portfolio companies, investors, and partners.”

Matrix Partners established its China unit in 2008, managed by partners David Zhang, David Su, and Shao Yibo, three decades after its founding in Boston, Massachusetts. It is one of the most prominent investors in China, with over RMB 70 billion worth of assets under management (AUM), including stakes in major tech and internet companies like Xpeng Motors, Li Auto, and Alibaba’s Ele.me.