Peak XV Partners has closed a $1.3 billion fund to back startups across India and the broader Asia‑Pacific region, reinforcing its independent strategy after separating from Sequoia Capital. The capital will be deployed across seed, venture and APAC growth vehicles to support companies from initial product development through scale-up.
Fund structure and deployment strategy
The new corpus is split into three dedicated vehicles: an India Seed Fund targeting early-stage teams, an India Venture Fund for scaling companies, and an APAC-focused Fund to extend investments beyond India into neighbouring high-growth markets. Peak XV intends to make investments ranging from small seed checks to larger growth-stage commitments, allowing it to support companies through multiple funding rounds.
Investor backing and market signal
Limited partners in the raise include global endowments, foundations and institutional investors. The successful close amid a period of cautious venture activity globally is widely seen as an endorsement of India’s digital economy, deep‑tech capabilities and entrepreneurial talent pool.
Industry observers say the large capital commitment underlines continued international confidence in India as a strategic destination for technology and product-led startups, especially those with ambitions to scale regionally or globally.
Sector focus and rationale
Peak XV is expected to prioritise sectors showing rapid innovation in India — notably artificial intelligence, fintech, SaaS, consumer internet and deep tech — while remaining open to opportunities in climate tech, enterprise software and financial services. The firm cites India’s engineering talent, growing data infrastructure and cost advantages as drivers for AI‑led product development.
Significance after the Sequoia separation
This fundraise represents a major milestone for Peak XV since its rebranding and shift to independent operations. The firm’s portfolio already includes several prominent startups moving towards public listings or international expansion, and the fresh capital strengthens its capacity to participate meaningfully in the upcoming funding and exit cycles.
Implications for the Indian startup ecosystem
Coming at a time when funding activity is stabilising after a slowdown, the $1.3 billion raise provides Indian founders with renewed access to structured capital across multiple stages. Large, diversified funds such as this are expected to play a pivotal role in sustaining product development, hiring and market expansion for high-potential ventures across India and the APAC region.
