Peak XV Closes $1.3 Billion Fund: A Massive Vote of Confidence in India’s Startup Engine

February 21, 2026

In a resounding signal of confidence in India’s innovation economy, Peak XV Partners has raised $1.3 billion for its first independent fund since parting ways with global giant Sequoia Capital.

Announced on February 20, 2026, this landmark fundraise comes at a pivotal moment for the Indian startup ecosystem. With record IPO activity, profitable unicorns emerging across sectors, and surging momentum in deep-tech and AI, Peak XV’s fresh capital injection will fuel the next wave of category-defining companies .

The firm, formerly known as Sequoia Capital India & Southeast Asia, has been a cornerstone of the region’s venture landscape for two decades. This new fund—split across three vehicles targeting seed, early-stage, and Asia-Pacific opportunities—reaffirms that India remains one of the world’s most exciting investment destinations .

The Fund: Structure and Strategy

Peak XV’s $1.3 billion corpus is deployed across three distinct funds, each targeting specific stages and geographies :

1. India Seed Fund

Focus: Very early-stage startups, from idea to proof-of-concept
Cheque size: Up to $5 million
Objective: Back founders at the earliest stages, helping them validate ideas and achieve product-market fit

2. India Venture Fund

Focus: Early-stage (Series A and B) companies with demonstrated traction
Cheque size: $5–15 million, extending up to $20 million in select cases
Objective: Accelerate growth for startups ready to scale

3. Asia Pacific (APAC) Fund

Focus: Startups across Southeast Asia and the broader APAC region
Objective: Build a stronger India-APAC investment corridor, supporting companies with regional and global expansion plans

Importantly, this fresh capital sits alongside significant uninvested capital in Peak XV’s existing growth fund (raised in 2022), giving the firm the ability to write cheques ranging from single-digit millions up to $100 million for later-stage opportunities .

“Our core strategy remains the same. We will invest across seed, venture, and growth stages. What has evolved is our cross-border approach. We are more actively building an India-APAC corridor,” said Shailendra Singh, Managing Director at Peak XV Partners .

Investment Focus: Where the Money Will Flow

Peak XV’s investment thesis centers on high-conviction sectors where India and APAC startups are building global leadership :

1. Artificial Intelligence (AI) — The Overarching Theme

AI isn’t just another sector for Peak XV—it’s a lens through which the firm views all investment opportunities .

Three Focus Areas Within AI:

Layer	Focus	Opportunity
Application Layer	Workflow-driven systems that plug into data layers and systems of record	Teams building practical AI applications for real-world problems
Enterprise AI	AI adoption in large companies, leveraging India’s services DNA	Driving transformation in traditional enterprises
Infrastructure & Tooling	The “picks and shovels” powering the agentic economy	Backing companies building foundational AI infrastructure

“AI is beginning to impact all other categories. What will be the AI applications in fintech, for instance, is one area we are very excited about. It’s only a matter of time we will see AI applications everywhere,” Singh noted .

The firm is also actively considering India-specific sovereign AI investments, recognizing the strategic importance of homegrown AI capabilities .

2. Fintech

Peak XV has a storied history in Indian fintech, backing companies like Pine Labs, Razorpay, and Groww . With the sector evolving rapidly—driven by UPI, agentic commerce, and AI-powered financial services—the firm continues to see massive opportunity.

3. Consumer Internet

From Zomato to Meesho to Lenskart, Peak XV has backed some of India’s most iconic consumer brands . The next wave of consumer internet innovation—voice-first, vernacular, and AI-native—will be a key focus.

4. Enterprise SaaS

India’s SaaS story is global. With over 1,500 SaaS companies and a growing number of unicorns, Peak XV sees continued opportunity in backing founders building for the world from India.

5. DeepTech

Beyond AI, the firm is expanding investments in emerging deep-tech areas including space tech, climate tech, and advanced manufacturing .

6. Climate Tech

With India’s commitment to net-zero and the growing urgency of climate action, Peak XV is actively backing startups building solutions for sustainability, clean energy, and resource efficiency.

Why This Matters: The Signal Behind the Fundraise

Peak XV’s $1.3 billion close sends multiple positive signals about the state of India’s startup ecosystem:

1. Renewed LP Interest in Emerging Markets

After a cautious period during 2022–2024, limited partners (LPs)—including leading endowments, foundations, and sovereign funds—are once again deploying capital into emerging markets . Peak XV’s ability to raise this fund demonstrates that India remains a top-tier destination for global capital.

2. Maturing Ecosystem with Clear Liquidity Paths

The fundraise comes on the heels of extraordinary exit activity. Peak XV generated over $2 billion in realized proceeds in 2024 and 2025, exceeding the total capital invested during that period .

Notable IPOs from Peak XV’s portfolio include:

Groww — Wealthtech platform
Pine Labs — Fintech merchant platform
Meesho — Social commerce leader
Zomato (now Eternal) — Food delivery giant
Capillary Technologies — Loyalty and customer engagement
Wakefit — Direct-to-consumer home solutions

Beyond IPOs, the firm executed private exits from companies like Sirion Labs, Healthkart, Porter, Minimalist, and Rebel Foods .

The firm continues to hold around $4 billion in public securities, reflecting the scale of its successful outcomes .

3. Conviction in Deep-Tech and AI

The fund’s strong focus on AI, deep-tech, and sovereign capabilities reflects growing conviction that India is building foundational technologies, not just applications. This aligns with national momentum seen at the India AI Impact Summit, including Sarvam AI’s 105B model launch, Yotta’s $2 billion supercluster, and the NVIDIA-AIGI partnership.

4. Resilience Through Leadership Transitions

The fundraise comes after a period of significant leadership changes. Since the split from Sequoia in 2023, several managing directors have departed, including Shailesh Lakhani, Abheek Anand, Harshjit Sethi, Ashish Agrawal, Ishaan Mittal, and Tejeshwi Sharma .

Despite these transitions, the firm’s ability to close a $1.3 billion fund demonstrates institutional resilience and LP confidence in the current leadership team, now led by Singh, Mohit Bhatnagar, Rajan Anandan, GV Ravishankar, and others .

The Portfolio: A Legacy of Backing Winners

Peak XV’s track record speaks for itself :

Over 450 companies invested across India and APAC
More than 35 IPOs across global exchanges
Over 50 unicorns in portfolio
$10 billion+ in capital managed across 16 funds
Estimated one-fifth of total capital invested in Indian startups

Iconic Portfolio Companies:

Zomato — India’s first major consumer internet IPO
Meesho — Social commerce revolutionizing Bharat
Groww — Democratizing investments
Razorpay — Payments infrastructure leader
Pine Labs — Merchant commerce platform
Lenskart — Eyewear retail transformed
Khatabook — Digitizing small businesses
Zepto — Quick commerce pioneer

Recent Investments Post-Rebranding:

Sarvam AI — Sovereign AI foundational models
Scapia — Fintech for travelers
RapidCanvas — AI-powered business intelligence
Sarvagram — Rural commerce
Atlys — Visa processing platform
Mokobara — Direct-to-consumer lifestyle brand
Stable Money — Fixed income investments
GoodScore — Alternative credit scoring

What This Means for Founders

For entrepreneurs building in India, Peak XV’s fresh $1.3 billion war chest translates into tangible opportunities:

1. More Dry Powder for Ambitious Rounds

With significant capital to deploy across stages, Peak XV can lead rounds, provide follow-on funding, and support startups through their entire lifecycle—from seed to IPO.

2. Stronger Support for Deep-Tech

The explicit focus on AI and deep-tech means founders building capital-intensive, R&D-heavy ventures will find a receptive partner with both capital and domain expertise.

3. Global Ambition Backed by Regional Corridor

Peak XV’s India-APAC corridor strategy means startups with regional or global expansion plans can leverage the firm’s network, expertise, and capital across markets .

4. Exit Pathways and Public Market Readiness

With over 35 IPOs in its portfolio, Peak XV brings deep experience in preparing companies for public markets. Founders can benefit from this expertise as they scale toward liquidity events.

5. Resilience and Long-Term Orientation

As Singh emphasized, the firm seeks founders who combine “vision, resilience and execution as they build enduring companies” . In a market that has moved beyond growth-at-all-costs to sustainable business models, this orientation aligns with what it takes to build category leaders.

The Broader Context: India’s Venture Landscape Heats Up

Peak XV’s fundraise is part of a larger story: Indian venture capital is entering a new phase of maturity and scale.

Other Notable Fundraises in 2025–2026:

Nexus Venture Partners — $700 million fund
A91 Partners — $665 million fund
Accel India — $650 million fund
General Catalyst — Committed $5 billion to India over five years

Cumulative capital raised by leading domestic VCs has now crossed $3 billion, according to Venture Intelligence data .

This wave of capital comes at a time when:

Public markets are welcoming new-age tech companies
Profitability is becoming the norm, not the exception
Deep-tech is gaining serious momentum
Global investors see India as a core part of their emerging market allocation

Looking Ahead: The Next Wave of Indian Innovation

Peak XV’s $1.3 billion fund is more than a number—it’s a statement about where the next decade of Indian innovation is headed.

Key Themes to Watch:

1. AI-Native Companies
Every sector will be reshaped by AI. Peak XV is positioning itself to back founders building AI-native businesses across fintech, consumer, enterprise, and healthcare.

2. Sovereign AI
With national focus on building domestic AI capabilities, startups creating foundational models, AI infrastructure, and India-optimized solutions will attract significant capital.

3. Deep-Tech Commercialization
From space tech to climate tech to advanced manufacturing, India’s deep-tech ecosystem is moving from labs to markets. Patient capital from firms like Peak XV will fuel this transition.

4. Global Expansion from Day One
India’s best founders are thinking globally from inception. Peak XV’s APAC corridor and global network will help them scale beyond borders.

5. Sustainable, Profitable Growth
The era of growth-at-all-costs is over. Peak XV’s focus on “enduring companies” reflects a market where unit economics, profitability, and durable competitive advantage matter most.

Conclusion: All In on India

Peak XV’s $1.3 billion fundraise is a defining moment for India’s startup ecosystem. It represents not just capital, but conviction—conviction that India’s talent pool is world-class, that its market opportunity is unparalleled, and that its founders are building companies that will define the future.

As Shailendra Singh put it: “The scale of opportunity, depth of talent, and growing global ambition among founders makes this one of the most exciting periods we have seen.”

For founders building the next generation of Indian innovation, the message is clear: Peak XV is here to partner, with significant capital, deep experience, and long-term commitment.

India’s startup story keeps getting bigger—and investors like Peak XV are all in.