Pay Disputes Following Groww's Blockbuster IPO Trigger Key Partner Exits at Peak XV
Differences over payouts and carried interest in the aftermath of Groww's highly successful public listing were a primary driver behind the recent departures of partners Ashish Agrawal, Ishaan Mittal, and Tejeshwi Sharma from Peak XV Partners, according to multiple sources familiar with the internal discussions.
Leadership Churn at India's Largest Venture Capital Firm
These exits contribute to the ongoing leadership churn at Peak XV, which is India's largest venture capital firm following its separation from the global Sequoia Capital brand. Sources indicate that the disagreements over economic outcomes emerged sharply in the days immediately after Groww's IPO—one of Peak XV's most lucrative investments, spearheaded by Agrawal.
Understanding Carried Interest and the Groww Windfall
Carried interest, often referred to as carry, represents a performance-based share of investment profits distributed to a venture capital firm's partners. In the case of Groww, Peak XV's initial investment of approximately Rs 230 crore ballooned into a stake valued at roughly Rs 17,300 crore post-listing, marking it as one of the firm's most profitable outcomes in its history.
People with knowledge of the internal deliberations revealed that disputes arose over:
- How the substantial gains from the Groww outcome should translate into individual partner payouts.
- The structure of carried interest within Peak XV's upcoming venture fund.
These discussions reportedly intensified over a brief but critical three-to-four-day period, creating significant friction within the firm.
Firm Stance and Institutional Perspectives
According to individuals briefed on the matter, senior partners at Peak XV, including managing partner Shailendra Singh, were unwilling to revisit payout terms beyond what had been previously agreed upon, even considering the extraordinary scale of the Groww success. "The friction built very quickly over the last week," one person familiar with the discussions commented.
Another source framed the disagreements as institutional rather than individual, emphasizing that returns at a venture firm reflect collective contributions across various functions:
- Deal sourcing and origination.
- Investment decision-making processes.
- Provision of follow-on capital.
- Platform support and value addition.
This perspective underscores that such outcomes cannot be attributed solely to any single partner, highlighting the collaborative nature of venture capital success.
Tensions Over the New Venture Fund
Sources also pointed to underlying tensions regarding carried interest in Peak XV's next venture fund. One person noted that requests for a higher share of carry were raised at a late stage in the fundraising process, when discussions with limited partners were nearing completion and documentation was almost finalized.
Although Mittal and Sharma were not directly involved with the new venture fund, their exits are closely linked to Agrawal's departure, according to people familiar with the situation. The trio had collaborated for nearly 15 years, and Agrawal's decision to leave acted as a catalyst for their joint exit.
Broader Context of Senior Departures
Peak XV did not respond to detailed queries regarding the payout discussions or the circumstances surrounding these exits. However, according to estimates, more than 35 senior investors and operating leaders—at the vice-president level and above—have exited the firm since its rebranding.
Recent high-profile departures include:
- Ajey Gore, currently on a health-related sabbatical.
- Aaditya Sood and Anni Cai, as confirmed by sources.
An affected portfolio company founder expressed concern, stating, "There's disappointment in seeing a blue-chip firm unravel publicly. As a founder, my immediate concern is practical—how board seats transition and how continuity is ensured." This sentiment reflects the broader impact of such leadership changes on the startup ecosystem and portfolio companies relying on stable investor relationships.
