Peak XV Partners, the largest India-focused venture fund, has raised around $1.2 billion in exits since its spinoff from Sequoia last year, two sources familiar with the matter told britcommerce.
The investor has sold stakes in nearly a dozen portfolio companies that went public last year, including food delivery group Zomato, cosmetics retailer Mamaearth and spam protection firm Truecaller.
It has also sold stakes in a few private startups, including K12 Techno, Pocket Aces and PingSafe, through secondary transactions and M&A. The firm’s current funds total $2.85 billion.
Peak XV declined to comment.
The outflow comes at a time when India’s stock market is hitting record highs and the country’s shares are trading at a significant premium to other emerging markets. Macquarie analysts wrote in a recent note that India’s price-to-earnings ratio stands at about 21 times, compared with 10 times for emerging markets overall, 14.5 times for global markets, 17 times for the US and 8 times for China.
The IPO window has also opened in the country, although the market for new entrants remains subdued in the United States and much of the world. Indian companies have raised about $9 billion through IPOs this year, and more are expected to go public before the end of the year, Bank of America analysts estimate.
A $500 million block trade in Five-Star Business Finance, a portfolio company of Peak XV, that began on Thursday was more than half completed by 11.30 am Indian Standard Time.
Peak XV’s dominance in the region has generated significant interest and scrutiny due to its scale and aggressive investment approach. The firm’s Surge program, which offers favorable terms and ample resources to early-stage startups, has become a sought-after launchpad for startups from India and Southeast Asia, somewhat eclipsing the appeal of Y Combinator’s offering.
Earlier this year, Peak XV informed its limited partners that it was launching a perpetual fund backed by its own partners, indicating a high degree of confidence in its long-term strategy and the potential of the region.
The company’s journey, which began more than a decade ago under the name Sequoia, culminated in a staggering $9 billion in assets under management and another $2 billion yet to be deployed. Its portfolio includes more than 400 companies, of which more than 50 are unicorns, and about 40 have achieved annual revenues exceeding $100 million.
Peak XV has also facilitated more IPOs than any other India-focused venture fund. Since 2020 alone, 15 of its portfolio companies have successfully gone public.
Last year, Sequoia split its China and India and Southeast Asia funds amid geopolitical tensions between the United States and China. The firms said they had agreed to separate to avoid “growing market confusion” and “portfolio conflicts between entities.”
The move sent shockwaves through the industry. Peak XV has since expanded its focus to markets beyond India and Southeast Asia, and has also expanded its team to the US.
In June this year, venture capital firm Matrix said it would also rename its subsidiaries in India and China.