Peak XV raises $1.3 billion for India and Asia-focused funds

Venture capital firm Peak XV announced on Friday that it has raised $1.3 billion across new India and Asia-focused funds. The firm expects to invest this new capital over the next two to three years, primarily deploying it across its India seed and venture funds as well as its APAC vehicle (an Asia-Pacific investment fund). A majority of the capital is earmarked for India. This fundraise comes as competition for deals in the region intensifies. For instance, rival venture capital firm General Catalyst recently outlined plans to invest $5 billion in India over the next five years, sharply increasing its commitment to the market.

Peak XV, which split from Sequoia Capital in 2023 to separate its India-focused portfolio, now manages more than $10 billion in assets. The firm counts more than 450 portfolio companies across fintech, software, and consumer internet, spanning seed to growth stages. While the firm focuses on Asia, managing director Shailendra Singh noted its different positioning in the U.S. “In the U.S. market, we are an underdog — and that’s great,” Singh said, explaining that the firm is focusing on areas where its experience in software, developer tools, and fintech gives it an edge. Singh added that Peak XV is not trying to match rivals dollar-for-dollar, emphasizing that the firm’s priority is generating strong returns rather than maximizing assets under management.

The fundraise follows a period of leadership changes at Peak XV, including the recent departures of senior partner Ashish Agrawal and investors Ishaan Mittal and Tejeshwi Sharma. However, Singh emphasized the stability of the leadership team, noting that five of its seven managing partners have been with the firm for more than a decade. The broader team includes more than 30 full-time investors. Peak XV has returned more than $7 billion in cash to investors since inception, with 35 of its portfolio companies having gone public. In September 2024, TechCrunch reported that the firm had returned about $1.2 billion in the year.

Ahead of the current raise, Peak XV’s prior fund was sized at $2.85 billion in late 2021, before its split from Sequoia Capital. That figure was later reduced to about $2.4 billion. The earlier pool included Peak XV’s India growth strategy, and Singh stated that the firm does not plan to raise a new growth fund until more of that dry powder (uninvested capital) is deployed. The firm expects to deploy the new capital primarily into AI, fintech, and consumer startups, having already made more than 80 investments in AI startups to date.

Why it matters

Peak XV is sharpening its focus on artificial intelligence and cross-border bets amid intensifying competition for deals in the region.