Peak XV Partners Secures $1.3 Billion for Startup Investments in India and APAC Region
In a significant move for the venture capital landscape, Peak XV Partners—formerly known as Sequoia Capital India and Southeast Asia—has successfully raised $1.3 billion for a suite of funds aimed at backing startup founders across India and the broader Asia-Pacific (APAC) region. This development comes nearly three years after the firm's separation from its Silicon Valley parent, Sequoia Capital, marking a pivotal moment in its independent journey.
Three-Tier Fund Structure with Clear Investment Focus
The newly raised capital will be strategically deployed across three distinct funds:
- India Seed Fund: Targeting very early-stage startups with cheque amounts of up to $5 million.
- India Venture Fund: Focused on early-stage investments ranging from $5 million to $15 million, with potential allocations reaching up to $20 million in select cases.
- APAC Fund: Dedicated to opportunities across the broader Asia-Pacific region.
This capital infusion complements the firm's existing $1 billion growth fund raised in 2022, which remains approximately half uninvested. According to Shailendra Singh, Managing Director at Peak XV Partners, this provides the firm with substantial flexibility to invest in startups of varying scales and sizes.
Growth Investing in a High-Stakes Market
In an interview, Singh highlighted that for growth-stage investing, India continues to be one of the world's most expensive markets. He elaborated on the evolving dynamics of tech investing globally, noting, "What is happening in tech globally is that the dollars are concentrating into fewer and fewer companies, and those very few companies are becoming enormous in scale. In growth equity, we have to find the very few companies that will become very big."
Singh emphasized that the firm can deploy up to $75-$100 million at the top end from its growth fund, underscoring its capacity to support high-potential ventures as they scale.
Backing from Diverse Investors and Strategic Priorities
The funds have garnered support from a diverse mix of investors, including universities, endowments, foundations, and select sovereign funds. Peak XV Partners aims to deploy this capital over the next two to three years, reflecting a targeted and disciplined investment approach.
In a statement, the firm expressed confidence in its strategy, stating, "The strong backing from our Limited Partners (LPs) for our inaugural Peak XV funds reflects their conviction in our markets, strategy, and team."
Focus on AI and Fintech Innovations
Beyond its traditional focus areas of fintech and consumer sectors, the new funds will allocate capital specifically for AI-native startups and companies adopting an AI-first approach. Singh shared his enthusiasm for this direction, stating, "AI is beginning to impact all other categories. What will be the AI applications in fintech, for instance, is one area we are very excited about. It's only a matter of time we will see AI applications everywhere."
Additionally, the firm is actively considering opportunities related to India-specific sovereign AI investments, signaling a forward-looking stance on emerging technologies.
Legacy and Performance Amidst Organizational Changes
Launched in 2006 as Sequoia India, Peak XV Partners has built a formidable track record, having backed over 450 companies across the APAC region, including India. Among these, 36 have achieved public listings on stock exchanges worldwide. The firm has been an early investor in several blue-chip unicorns that have since evolved into publicly listed entities, such as Meesho, Zomato (now Eternal), and Groww.
Despite recent organizational shifts, including the departure of three Managing Directors due to disagreements over economics and payouts—adding to a series of senior-level exits since the split with Sequoia Capital—the firm has demonstrated robust financial performance. In 2024 and 2025, Peak XV generated over $1 billion in realised proceeds annually, exceeding the total capital invested and underscoring its ability to deliver strong returns.
This fundraise not only reinforces Peak XV Partners' commitment to fostering innovation in India and APAC but also positions it as a key player in shaping the future of tech investing amidst a rapidly evolving global landscape.
