Peak XV revealed on Friday that it has secured $1.3 billion through new funds centered on India and Asia. The firm, now overseeing over $10 billion in assets, is prioritizing artificial intelligence and cross-border investments due to growing deal competition in the area.
Funds will be allocated to its India seed and venture initiatives and its APAC vehicle. The majority is designated for India, with investments planned over two to three years, Managing Director Shailendra Singh stated on Friday.
In 2023, Peak XV parted ways with Sequoia Capital to differentiate the India-oriented segment of Sequoia’s portfolio. The firm now boasts over 450 portfolio companies in sectors like fintech, software, and consumer internet, from seed to growth stages.
This fundraise coincides with New Delhi hosting the AI Impact Summit, attracting major tech firms such as OpenAI, Anthropic, and Google. At the summit, General Catalyst announced plans to invest $5 billion in India over five years, significantly raising its previous commitment.
Singh emphasized that Peak XV isn’t aiming to match competitors financially but is focused on achieving high returns rather than merely expanding assets. The firm intends to tailor its fund sizes to the best opportunities for “high-performing funds.”
Singh mentioned that Peak XV is expanding its U.S. presence strategically. “In the U.S. market, we are an underdog — and that’s great,” Singh stated, highlighting the firm’s focus on areas where it possesses expertise in software, developer tools, and fintech.
This fundraising comes following leadership transitions at Peak XV, including the exits of senior partner Ashish Agrawal and investors Ishaan Mittal and Tejeshwi Sharma. Singh assured that the leadership retains substantial experience, noting five of seven managing partners have been with Peak XV for over ten years. The wider team includes over 30 full-time investors, with around a dozen leading investments regionally.
Since establishment, Peak XV has returned over $7 billion in cash to investors, Singh added, with 35 portfolio companies going public. He did not disclose distributions post-Sequoia split. In September 2024, TechCrunch reported the firm returned about $1.2 billion since separating from Sequoia.
Before this raise, Peak XV’s prior fund was $2.85 billion in late 2021, before splitting from Sequoia. This amount was later adjusted to about $2.4 billion, described by Singh as a strategic approach. The earlier fund included Peak XV’s India growth strategy, and Singh stated no new growth fund would be established until more investments are made from existing resources.
Singh plans to channel the new capital mainly into AI, fintech, and consumer startups, while recognizing emerging prospects in deep tech. To date, the firm has invested in over 80 AI startups. He noted the growing importance of U.S.-India connections as more regional founders target global markets.