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Peak XV Raises $1.3B, Doubles In AI As Global India VC Competition Heats Up

techtost.comBy techtost.com21 February 202603 Mins Read
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Peak Xv Raises $1.3b, Doubles In Ai As Global India
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Top XV announced on Friday that it has raised $1.3 billion in new funds focused on India and Asia. The firm, which now manages more than $10 billion in assets, is focusing on artificial intelligence and cross-border betting amid intensifying competition for deals in the region.

The capital will be deployed across all seed and venture capital funds in India as well as the APAC vehicle. The majority is destined for India, with the company expecting to invest the reservoir over the next two to three years, Chief Executive Shailendra Singh said in an interview on Friday.

Peak XV was spun off from Sequoia Capital in 2023 in an effort to separate the India-focused parts of Sequoia’s portfolio. The company now has more than 450 portfolio companies in fintech, software and consumer internet, spanning from seed to growth stages.

The company’s new fundraiser comes as New Delhi hosts the AI ​​Impact Summit, attracting major tech players including OpenAI, Anthropic and Google. At the event, General Catalyst outlined plans to invest $5 billion in the country over the next five years, sharply increasing its previous commitment to the market.

Singh said Peak XV is not trying to match competitors dollar for dollar, stressing that the firm’s priority is generating strong returns rather than maximizing assets under management. The firm will continue to grow capital based on where it sees the best opportunity to deliver “high-performing capital,” he said.

He added that Peak XV is still building its presence in the US and is selective about where it will compete. “In the US market, we’re an underdog — and that’s great,” Singh said, adding that the company is focusing on areas where its experience in software, developer tools and fintech gives it an edge.

The latest fundraising follows a period of leadership changes at Peak XV, including the recent departures of senior partner Ashish Agrawal and investors Ishaan Mittal and Tejeshwi Sharma. Singh told TechCrunch that the company retains significant experience in its leadership team, noting that five of its seven managing partners have been with Peak XV for more than a decade. The wider Peak XV team includes more than 30 full-time investors, with around a dozen leading investments across its markets.

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Peak XV has returned more than $7 billion in cash to investors since its inception, Singh said, adding that 35 of its portfolio companies have gone public. He declined to specify the distributions after the company was split from Sequoia Capital. In September 2024, TechCrunch reported that the company had returned about $1.2 billion in the year.

Prior to the current raise, Peak XV’s previous capital was $2.85 billion at the end of 2021, before the company was spun off from Sequoia Capital. That amount was later reduced to about $2.4 billion as part of what Singh described as a disciplined approach to capital. The previous team included Peak XV’s development strategy for India, and Singh said the company doesn’t plan to raise new growth capital until more of that dry powder is developed.

Singh expects to deploy the new capital primarily in AI, fintech and startups, while also seeing emerging opportunities in deep tech. The firm has made more than 80 investments in AI startups to date. He added that US-India ties are becoming increasingly important as more founders in the region build for global markets.

1.3B competition Doubles Exclusive Global heats India Peak raises Sailendra Singh sequoia capital Top XV
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