Peak XV Capital Secures $1.3 Billion to Drive AI Investments Amid Intensified VC Landscape in India
Peak XV Capital has successfully raised $1.3 billion across new funds targeting India and Asia, marking a significant addition to its portfolio that now exceeds $10 billion in managed assets. The firm is strategically honing in on artificial intelligence (AI) and cross-border investments in response to the growing competition within the regional venture capital (VC) market.
The newly acquired capital will be allocated primarily to Peak XV’s seed and venture funds in India, as well as its Asia-Pacific investment vehicle. In a recent statement, Managing Director Shailendra Singh highlighted that the firm plans to deploy this capital over the next two to three years, with a strong emphasis on opportunities within India.
After stepping away from Sequoia Capital in 2023 to concentrate on its India-focused operations, Peak XV has reeled in over 450 portfolio companies across various sectors, including fintech, software, and consumer internet, spanning early seed stages to growth phases.
This latest funding round aligns with the ongoing AI Impact Summit in New Delhi, which has attracted tech giants such as OpenAI, Anthropic, and Google. During the summit, General Catalyst announced a commitment to invest $5 billion in India over the next five years, significantly increasing its previous pledge to the market.
Singh specified that Peak XV is not seeking to compete dollar-for-dollar with other VC firms. Instead, the focus remains on delivering robust returns rather than maximizing capital under management. The firm will tailor its fund sizes to reflect the best opportunities for high-performing results.
Furthermore, Singh noted that Peak XV is methodically establishing its footprint in the U.S., selectively choosing where to engage in competition. He remarked, “In the U.S. market, we are an underdog — and that’s great,” indicating a strategic focus on areas where their expertise in software and fintech provides a competitive advantage.
Prior to this latest capital raise, Peak XV’s previous fund was valued at $2.85 billion in late 2021 before its separation from Sequoia Capital, although it was later adjusted to approximately $2.4 billion as part of a disciplined investment strategy. This earlier collaborative fund included efforts related to Peak XV’s India growth strategy, with Singh confirming that the firm plans to wait until a significant portion of this capital is deployed before considering additional growth fundraises.
Singh anticipates that the fresh capital will primarily funnel into AI, fintech, and consumer-focused startups while also scouting emerging prospects within deep tech. Notably, Peak XV has already made over 80 investments in AI startups, reinforcing the firm’s commitment to growing the synergy between U.S. and Indian markets as more entrepreneurs in India seek to develop products for global audiences.
