Peak XV Secures $1.3 Billion to Amplify AI Investments Amid Intensifying VC Competition in India
Peak XV Partners has successfully raised $1.3 billion across new funds targeting India and the broader Asia-Pacific region. This substantial capital infusion elevates the firm’s total assets under management to over $10 billion, underscoring its commitment to artificial intelligence (AI) and cross-border investments amidst a fiercely competitive venture capital landscape in India.
The newly acquired funds are allocated across Peak XV’s India-focused seed and venture funds, as well as its Asia-Pacific investment vehicle. A significant portion is earmarked for the Indian market, with plans to deploy the capital over the next two to three years. Managing Director Shailendra Singh emphasized the firm’s strategic focus on AI and cross-border opportunities, aiming to capitalize on emerging trends and technological advancements in these sectors.
This fundraising milestone coincides with the AI Impact Summit in New Delhi, an event that has attracted major technology players such as OpenAI, Anthropic, and Google. Notably, General Catalyst announced plans to invest $5 billion in India over the next five years, significantly increasing its previous commitment to the market. This development highlights the escalating interest and competition among global venture capital firms in India’s burgeoning tech ecosystem.
Singh clarified that Peak XV’s strategy is not to match competitors dollar-for-dollar but to prioritize generating strong returns over merely increasing assets under management. The firm intends to size its funds based on opportunities that promise high performance, ensuring a disciplined and strategic approach to investments.
Since its separation from Sequoia Capital in 2023, Peak XV has expanded its portfolio to include over 450 companies across fintech, software, and consumer internet sectors, spanning from seed to growth stages. The firm has demonstrated a robust track record, returning more than $7 billion in cash to investors since its inception, with 35 portfolio companies achieving public listings.
The recent fundraising follows a period of leadership transitions within Peak XV, including the departures of senior partner Ashish Agrawal and investors Ishaan Mittal and Tejeshwi Sharma. Despite these changes, Singh assured that the firm retains significant experience within its leadership team, noting that five of the seven managing partners have been with Peak XV for over a decade. The broader team comprises more than 30 full-time investors, with approximately a dozen leading investments across various markets.
Looking ahead, Peak XV plans to deploy the new capital primarily into AI, fintech, and consumer startups, while also exploring emerging opportunities in deep tech. The firm has already made over 80 investments in AI startups, reflecting its commitment to fostering innovation in this transformative sector. Singh highlighted the growing importance of U.S.-India ties, as more founders in the region aim to build for global markets, further emphasizing the strategic significance of cross-border investments.
