Lightspeed Ventures Plans Major New Fund for Indian and Southeast Asian Markets
Lightspeed India Partners is actively preparing to launch a fresh investment fund. The venture capital firm aims to raise approximately $500 million. This new vehicle will focus specifically on startups in India and Southeast Asia. Sources familiar with the matter confirmed the development to Mint.
The proposed fund represents the fifth dedicated early-stage pool that Lightspeed has established for these regions. Fundraising activities are expected to commence in the later part of 2026. This timeline suggests a launch in either the third or fourth quarter of the year.
Strategic Timing Amid Evolving Market Conditions
This fundraising initiative arrives at a pivotal moment. Lightspeed's portfolio now includes several companies nearing public listings. Firms like Oyo, Zepto, Zetwerk, Udaan, and Acko are in various stages of IPO preparation. These potential exits could generate significant liquidity for the venture capital firm.
The move follows a period of slower deployment after the intense funding boom of 2021. Unlike previous cycles where Lightspeed returned to markets every two to three years, this new fund comes after a longer pause. The firm is still actively investing capital from its fourth fund, which closed in 2022 with $500 million.
A History of Growing Commitment to the Region
Lightspeed has consistently increased its financial commitment to India and Southeast Asia over the years. The firm's first dedicated fund for the region raised $135 million. Its second fund gathered $180 million, while the third closed at $275 million in 2020. The fourth and largest fund so far secured $500 million two years later.
While the new fund is anticipated to be in a similar $500 million range, discussions about a potentially smaller vehicle have occurred. In a recent interview, Lightspeed's global lead Bejul Somaia mentioned the firm might evaluate a fund size between $250 million and $300 million. The final decision remains pending.
Global Fundraising Momentum and Investment Focus
Lightspeed's regional fundraising push aligns with its global strategy. The firm announced in December 2025 that it raised over $9 billion across six new global funds. This achievement brought its total assets under management to more than $40 billion worldwide.
Globally, Lightspeed has demonstrated strong interest in artificial intelligence. The firm has backed over 165 AI-native companies and invested more than $5.5 billion in the sector. Notable investments include Anthropic, Glean, Rubrik, and Databricks.
In India, Lightspeed maintains a sector-agnostic approach but is likely to increase investments in specific areas. Industry observers expect more funding to flow into AI, deeptech, and quick commerce segments. The firm has already supported quick commerce players like Zepto, Snabbit, Limeroad, and Slikk.
Broader Venture Capital Revival in India
Lightspeed's planned fund contributes to a wider resurgence of venture capital activity focused on India. Several other firms have recently raised substantial new funds. Nexus Venture Partners, A91 Partners, and Accel India collectively secured over $600 million last year.
Additional venture capital firms including Bessemer, Fireside Ventures, Blume Ventures, and Chiratae Ventures have also closed new investment vehicles. This collective activity signals renewed confidence in the Indian startup ecosystem after a period of market correction.
The firm declined to comment on specific queries regarding the new fund. However, the preparation signals Lightspeed's continued belief in the long-term growth potential of startups across India and Southeast Asia.
