Peak XV Partners has secured $1.3 billion in new capital, strengthening its position as one of the most prominent venture investors in India and Southeast Asia and sharpening its focus on artificial intelligence and deep-tech startups. The new capital will be deployed across early- and growth-stage companies over the next few years, with a substantial share expected to support Indian startups building AI-driven software, infrastructure, and enterprise solutions. The fundraising comes amid recent senior-level departures at the firm, reflecting a period of internal transition despite the firm scaling new investments.
Apart from being the largest fundraise by an India-based fund, the fund is the company’s first major raise since it split from Sequoia Capital in 2023 and comes as global investors heat up their push into the country. The separation created independent regional entities, allowing Peak XV Partners to operate with localized decision-making and region-specific capital strategies while retaining the legacy portfolio and network built over nearly two decades. The firm now manages more than $10 billion in assets and has backed more than 450 companies across India and Southeast Asia. Its portfolio includes several of the region’s most influential startups, like BYJU’S, Zomato, Freshworks, Pine Labs, Razorpay, OYO, and Meesho.
The newly raised capital is expected to be invested over the next two to three years across seed, Series A, and growth rounds. While Peak XV continues to support consumer technology, fintech, healthcare, and SaaS businesses, artificial intelligence has emerged as a central investment theme. This becomes even more significant as estimates suggest that India’s AI market could exceed $20-25 billion by 2030.
India’s structural advantages are a key factor behind this focus. The country has more than 850 million internet users, one of the world’s lowest mobile data costs, and a digital public infrastructure that includes Aadhaar identity verification and the Unified Payments Interface, which processes billions of transactions monthly. As companies digitize operations and adopt automation, demand for AI-enabled software, fraud detection, customer service automation, and predictive analytics is expanding rapidly.
However, in parallel with these efforts, Peak XV is going through a phase of internal leadership changes. Last week, three senior investors, Ashish Agrawal, Ishaan Mittal, and Tejeshwi Sharma, stepped down to launch a new venture capital fund of their own. Earlier, in September 2025, managing director Harshjit Sethi left the firm after nearly a decade, during which he built and managed investments in companies like BharatPe, Darwinbox, and several AI-focused startups. Around the same period, managing partners Shailesh Lakhani and Abheek Anand also exited, following an earlier departure by investor Shraeyansh Thakur and several others.
Meanwhile, the fundraising shows intensifying competition among global venture firms seeking exposure to India’s startup ecosystem. For example, during the ongoing AI Impact Summit 2026 in New Delhi, US-based venture capital giant General Catalyst announced plans to invest $5 billion in Indian startups by 2031. Other major investors, including Accel, Lightspeed Venture Partners, and Tiger Global, have also expanded their India strategies in recent years.
The Tech Portal is published by Blue Box Media Private Limited. Our investors have no influence over our reporting. Read our full Ownership and Funding Disclosure →
