Peak XV Partners: A Pillar of India's Startup Ecosystem

Peak XV Partners: A Pillar of India's Startup Ecosystem

Peak XV Partners, formerly Sequoia Capital India & SEA, stands as a dominant force in the Indian venture capital landscape, having actively shaped the ecosystem for nearly two decades. With an impressive AUM of approximately $9 billion across 13 funds and investments in over 400 companies, Peak XV has consistently identified and nurtured high-growth startups, leading to a significant number of unicorns in its portfolio, including Zomato, BYJU'S, OYO, and Freshworks. The firm's strategic evolution, marked by its recent rebranding and independent fundraise of $1.2-1.4 billion for India and Southeast Asia, underscores its adaptability to market dynamics. Peak XV's consistent track record of successful exits, yielding substantial returns, along with its robust mentorship programs and thought leadership, firmly establishes its position as a top-tier VC firm with profound and lasting impact on the Indian startup narrative. Its focus spans early-stage to growth-stage investments, with a recent emphasis on deeptech.

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I. Investment Activity & Scale

1.     Funds Raised & Assets Under Management (AUM): Peak XV Partners manages approximately $9 billion in capital across 13 funds, built over 17 years of operations in India and Southeast Asia. The firm is currently raising its first independent fund since its 2023 split from Sequoia Capital, targeting $1.2 billion to $1.4 billion for early-stage investments in India and Southeast Asia. This new fund follows a recalibration, with a previous $2.85 billion fund (under the Sequoia banner) being reduced by 16% primarily impacting growth-stage deals, signaling a measured approach.

2.     Number of Investments: Peak XV has invested in over 400 companies in India and Southeast Asia. This vast portfolio highlights its extensive reach and active participation across various sectors. The ASK Private Wealth Hurun India Future Unicorn Index 2024 identifies Peak XV Partners as the "top investor in Indian startups," having invested in 47 entities poised to become future unicorns.

3.     Investment Stages & Focus: The firm invests across all stages, from seed to growth. Its "Surge" program specifically targets early-stage companies, demonstrating a strong commitment to nurturing startups from their nascent phases. Sectorally, Peak XV has a diversified portfolio, including FinTech (e.g., Cred, FPL Technologies), SaaS (e.g., Chargebee, Freshworks), E-commerce (e.g., Purplle, Mamaearth), and a growing focus on deeptech. Rajan Anandan, Managing Director at Peak XV Partners, stated, "Deeptech is the 'final frontier' for the Indian startup ecosystem." He added, "We're very actively investing in deeptech from semiconductor to space to battery recycling to biosciences to AI."

4.     Capital Deployed (Estimated/Public): While specific deployment figures per company are not consistently public, the scale of their funds and number of investments indicate substantial capital deployment. Their recent fundraising for a $1.2-1.4 billion fund underscores their continued commitment to significant capital deployment in the region.

II. Portfolio Quality & Success

1.     Unicorns & Soonicorns (Valued >$1B): Peak XV Partners boasts an impressive number of unicorns in its portfolio. Key examples include Zomato, BYJU'S, OYO, Freshworks, Cred, Mamaearth, Purplle, and Digit Insurance. The firm is an investor in 70% of India's unicorns.

2.     Notable & Influential Portfolio Companies: Beyond unicorns, Peak XV's portfolio includes influential companies such as Zetwerk, Rebel Foods, CoinSwitch, 1mg, Urban Company, and PolicyBazaar. These companies have significantly impacted their respective industries and consumer behavior in India.

3.     Survival Rate & Growth: While precise survival rates are proprietary, the high number of active, high-growth companies and unicorns in their portfolio suggests a strong success rate and effective post-investment support. The fact that approximately 40 of their portfolio companies have achieved revenues of over $100 million further attests to their growth.

III. Exits & Returns (Proxy for ROI)

1.     Number of Successful Exits: Peak XV has a robust track record of successful exits. In the past year alone (as of May 2025), they generated nearly $1.2 billion in liquidity through five IPOs and additional secondary market sales.

2.     Type of Exits: Exits include a mix of IPOs and M&As. Recent IPOs include Ixigo, Awfis, Go Digit, Blackbuck, and Mobikwik. Notable past IPOs include Zomato and PolicyBazaar. They also execute significant secondary market sales.

3.     Notable/Large Exits (Estimated Multiples if Available): One notable example is their 16x return on investment in Go Fashion, translating to an estimated $150 million return on a $10 million investment, with an internal rate of return (IRR) of 43%. This exemplifies their capability to generate substantial returns. A source familiar with Peak XV's strategy noted, "Peak XV has taken advantage of the liquidity available by selling $1-1.2 billion of its investments over the past year, including through block trades involving the stocks of Zomato, Mamaearth, Indigo."

4.      Distribution of Capital to LPs: While specific distribution figures are not public, the consistent raising of new, large funds indicates strong LP confidence, which is typically driven by positive returns and distributions. The YourStory report on Go Fashion exit mentions that the "entire sum would now go to the revamped Peak XV team," implying clear distribution channels.

IV. Ecosystem Impact & Reputation

1. Thought Leadership & Industry Influence: Peak XV Partners actively contributes to thought leadership. Their "Surge" program is widely recognized for its mentorship and acceleration of early-stage startups. Managing Director Shailendra Singh highlights the firm's approach: "The best companies are founded and the best investments are made in downturns, tough funding cycles are a gift for investors." This reflects a long-term, strategic view that influences the broader market. Rajan Anandan's public statements on deeptech also shape industry discourse.

2. Founder & Entrepreneur Feedback: Peak XV has a strong reputation within the founder community, often cited for its strategic support and access to networks. However, the firm has faced some challenges related to governance crises in marquee portfolio companies like BYJU'S and Zilingo, and has seen some high-profile departures of senior leadership since its split from Sequoia Capital. Despite this, its continued ability to attract top-tier founders for investment rounds suggests overall positive sentiment. The rebranding to Peak XV was inspired by Mount Everest, symbolizing "the relentless pursuit of excellence by its founders despite challenges," suggesting a deep alignment with entrepreneurial drive.

3. Follow-on Funding Attraction: The firm's initial investment often acts as a strong signal, attracting subsequent rounds of funding from other investors. Many of their portfolio companies have successfully scaled through multiple funding rounds.

4. Contribution to Policy/Regulatory Environment: While not explicitly focused on policy lobbying, the firm's significant investments and leadership in key sectors indirectly contribute to policy discussions and the overall maturation of the regulatory environment for startups in India.

V. Operational & Strategic Elements

1. Team Strength & Experience: Peak XV has a deep and experienced team of managing directors, principals, and associates with diverse sector-specific expertise. While there have been some high-profile departures, such as Shraeyansh Thakur, Shailesh Lakhani, and Abheek Anand, the core leadership team remains strong. The firm continues to attract new talent, as evidenced by its robust team page.

2. Investment Thesis Evolution: The firm's investment thesis has shown adaptability. While maintaining a strong focus on consumer and enterprise tech, they have explicitly broadened their scope to include deeptech, reflecting an understanding of emerging opportunities in the Indian market. The firm's decision to re-size its fund in a "measured manner" for growth-stage deals also demonstrates strategic adaptation to market overvaluation.

3. Global Network & Synergies: As part of the former Sequoia Capital global network, and now with a strong independent identity, Peak XV leverages its extensive network for its Indian portfolio companies, providing access to global markets, strategic partnerships, and potential follow-on funding from international investors. Their focus on "building a global SaaS brand out of India," as seen with companies like Atlan, exemplifies this synergy. ---

Reflection

Peak XV Partners has undeniably been a transformative force in the Indian startup ecosystem over the last two decades. Its journey, from being Sequoia Capital India to its recent independent rebranding, reflects a strategic evolution tailored to the unique dynamics of the Indian and Southeast Asian markets. The sheer volume and quality of its investments are unparalleled, with a consistent ability to spot and back future giants. As the ASK Private Wealth Hurun India Future Unicorn Index 2024 states, "With an impressive portfolio of 47 investments, Peak XV Partners emerges as the top investor in the ASK Private Wealth Hurun India Future Unicorn Index 2024." This underscores their market leadership in identifying high-potential ventures.

The firm's strength lies not just in capital deployment but also in its deep engagement with portfolio companies. The success of its "Surge" program highlights its commitment to nurturing early-stage ventures. The consistent flow of successful exits, yielding significant returns, is a testament to its rigorous due diligence and value creation capabilities. The reported 16x return on Go Fashion, for instance, is a powerful indicator of their financial acumen. Shailendra Singh's insight that "the best investments are made in downturns" illustrates the firm's long-term, counter-cyclical investment philosophy, which has likely contributed to its sustained success even through market fluctuations.

However, the firm has also navigated challenges. The corporate governance issues within certain high-profile portfolio companies and recent senior leadership departures indicate areas for continued focus on internal governance and talent retention. Yet, the firm's proactive response, such as adjusting fund sizes to market conditions and a renewed emphasis on "measured" investments, demonstrates its resilience. Their commitment to emerging sectors like deeptech, as voiced by Rajan Anandan, signifies a forward-looking strategy: "Deeptech is the 'final frontier' for the Indian startup ecosystem." This adaptability ensures its continued relevance in a rapidly evolving tech landscape.

Peak XV's impact extends beyond financial returns. It has played a pivotal role in professionalizing the Indian VC space, setting benchmarks for investment practices, and fostering a culture of ambition among founders. Its reputation, built over years of backing market leaders, continues to attract the best entrepreneurial talent. Despite the inherent risks and public scrutiny that come with large-scale venture investing, Peak XV's consistent performance and strategic foresight solidify its position as a cornerstone of India's innovation economy, contributing significantly to its growth and global standing.

The firm's pursuit of excellence, symbolized by its name, continues to define its journey at the peak of Indian venture capital. ---

Reference

* Caproasia. (2025, April 28).

*$9 Billion Peak XV Partners (Previously Sequoia Capital) to Raise $1.2 billion to $1.4 billion in 1st Fund Launch Since 2024 Split into 3 Entities with Sequoia United States & Europe, HongShan for China, and Peak XV Partners for India & Southeast Asia, Sequoia Capital Managed $85 Billion AUM in 2022*. Retrieved from Caproasia.

·       The Economic Times. (2025, May 4). Peak XV seeks $1.4b for its first independent fund in India, SEA. Retrieved from Tech in Asia.

·       VCCircle. (2025, May 30). Peak XV Partners wraps up over $300 mn exit from India portfolio. Retrieved from VCCircle.

·       Cyprus Innovation Ecosystem. (n.d.). Peak XV Partners investor portfolio, rounds & team. Retrieved from The Tech Island.

·       Inc42. (n.d.). PE Funds Hone India Exits Playbook Amid Startup IPO Wave. Retrieved from Inc42.

·       Peak XV Partners. (n.d.). People: Shailendra Singh. Retrieved from Peak XV.

·       SCC Online. (2025, April 3). Delhi HC grants permanent injunction in favour of Peak XV Partners; restrains fraudulent websites and WhatsApp groups from passing off its trade mark. Retrieved from SCC Online.

·       YourStory. (2025, March 5). Investor Shraeyansh Thakur leaves Peak XV Partners, joins growing list of departures. Retrieved from YourStory.com.

·       Startup Story. (2024, June 21). Peak XV Partners Emerges as Top Investor in India's Future Unicorns. Retrieved from Startup Story.

·       Voice of Healthcare. (n.d.). Peak XV Partners: Shaping the Future of Healthcare Innovation. Retrieved from Voice of Healthcare.

·       Peak XV Partners. (n.d.). Podcast: Atlan: Leveraging Founder-Market Fit to Build a Global SaaS Brand. Retrieved from Peak XV.

·       YourStory.com. (2023, June 13). Peak XV Partners achieves 16X return on investment in Go Fashion: Report. Retrieved from YourStory.com.

·       Business Standard. (2024, June 21). Venture Capital firm Peak XV Partners most active investor in India: Hurun. Retrieved from Business Standard.

·       Inc42. (2025, April 3). Deeptech Is The Final Frontier For Indian Startup Ecosystem: Peak XV's Rajan Anandan. Retrieved from Inc42.

·       Livemint. (2024, October 2). Peak XV cuts vintage India funds in overheated market. Will catch up with profit later. Retrieved from Livemint.