Peak XV raises $1.3B, doubles down on AI as global VC rivalry in India heats up

Peak XV announced on Friday that it has raised $1.3 billion across new India and Asia-focused funds, with the majority earmarked for investments in artificial intelligence and fintech as the firm intensifies its focus on the region amid growing competition and recent leadership changes. The firm, which now manages more than $10 billion in assets after splitting from Sequoia Capital in 2023, plans to deploy the new capital across its India seed and venture funds as well as its APAC vehicle over the next two to three years. Managing director Shailendra emphasized that Peak XV is prioritizing generating strong returns over maximizing assets under management, contrasting with rivals like General Catalyst which recently announced plans to invest $5 billion in India over the next five years. The fundraise comes as New Delhi hosts the AI Impact Summit, attracting major technology players including OpenAI, Anthropic, and Google. Despite recent departures of senior partner Ashish Agrawal and investors Ishaan Mittal and Tejeshwi Sharma, Singh noted that five of Peak XV's seven managing partners have been with the firm for over a decade, and the team includes more than 30 full-time investors. The firm has returned more than $7 billion in cash to investors since inception, with 35 of its portfolio companies going public, though Singh declined to specify distributions since the split from Sequoia. Singh revealed that Peak XV expects to deploy the new capital primarily into AI, fintech, and consumer startups, while also seeing emerging opportunities in deep tech. The firm has already made more than 80 investments in AI startups to date and is building its presence selectively in the U.S., focusing on areas where its experience in software, developer tools and fintech gives it an edge. 'In the U.S. market, we are an underdog — and that's great,' Singh said. The latest fundraise follows a disciplined approach to capital, with their prior fund reduced from $2.85 billion to about $2.4 billion as more of that dry powder is deployed before raising a new growth fund.