Peak XV seeks $1.4b for its first independent fund in India, SEA

Peak XV Partners, formerly part of Sequoia Capital, is raising between US$1.2 billion and US$1.4 billion for its first independent fund. The fund will focus on early-stage investments in India and Southeast Asia.

This follows its 2023 rebranding after separating from Sequoia. Previously, it managed a US$2.85 billion fund under Sequoia, which was reduced by 16% in 2024, mainly impacting growth-stage deals.

The firm aims to close fundraising by early 2026, with formal updates to limited partners expected soon.

This will be Peak XV’s ninth fund since launching in India in 2006, bringing its total capital raised to nearly US$9 billion.

It is also expanding in the US, targeting Indian-origin founders and the AI sector.

🔗 Source: The Economic Times

🧠 Food for thought

1️⃣ Asian venture capital industry realignment shows rising autonomy from global firms

Peak XV’s transition from being part of Sequoia Capital to an independent entity reflects a broader reorganization of the Asian venture capital landscape.

The original separation in June 2023 wasn’t isolated, as Sequoia simultaneously split from both its India (now Peak XV) and China (now HongShan) partnerships, signaling a retreat from direct presence in Asia’s large markets 1.

This reorganization has allowed regional firms to develop investment strategies better suited to local markets, with Peak XV now focusing specifically on early-stage ventures across India and Southeast Asia 2.

The shift aligns with broader trends in the global VC industry, where regional investment decision-making is increasingly being prioritized over centralized control from Western hubs.

Despite the split causing significant internal changes with multiple managing director departures (including Shailesh Lakhani and Abheek Anand), Peak XV has maintained its market position and continued deal activity 3.

The firm’s upcoming $1.2-1.4 billion fundraise, at roughly half the size of its previous Sequoia-era fund, demonstrates the recalibration happening as the firm establishes its independent identity 2.

2️⃣ India’s venture capital resilience emerges amid global funding contraction

Despite Peak XV’s fundraising occurring in a challenging environment, the Indian venture ecosystem shows remarkable recovery from recent downturns.