‘We are defined by the choices we make…’: Peak XV downsizes growth fund in India by 16%

Peak XV Partners, formerly Sequoia Capital India, a year after its split from Silicon Valley-based Sequoia Capital, has decided to downsize its fund in India by 16 per cent. It comes after Peak XV clocked $1 billion in exits this year. It, nevertheless, said that its conviction about investing in India and South East Asia continue to stay strong. 

“We are defined by the choices we make. We have made voluntary changes that we believe will serve us well in a multi-decade time horizon,” said the venture capital firm in a statement. 

“In the context of a richly priced public market in India, we are investing in a measured manner in our growth fund, while we continue to lean in on seed and venture stage opportunities. As a result, we have made the decision to re-size our 2022 vintage funds by 16 per cent,” it said, adding that they are in track to have their second-best year for distributions and exits in their history thanks to strong portfolio performance.

Peak XV said they have decided to make some part of their carried interest linked to distribution of profits in their growth and multi-stage funds, while leaving their seed and venture fund economics unchanged. 

The venture capital firm said that their decision to downsize its $2.85 billion fund might appear contrarian to the market exuberance but will serve its founders and LPs well in the long-term. 

Peak XV (Peak Fifteen) – a reference to Mount Everest before its christening – has been operational in the region for 17 years. It has since expanded to manage over $9 billion in capital across 13 funds and invested in over 400 companies, out of which, it said, ~40 companies have achieved revenues of over $100 million. Peak XV has five offices in Bengaluru, Mumbai, Delhi, Singapore and Dubai

It had invested in companies such as BankBazaar, BharatPe, Bira (B9 Beverages), Blinkit, CarDekho, Cars24, ClearTax, Cred, DailyHunt, Go Colors, GoKwik, Groww, Heads Up For Tails, HealthKart, Minimalist, MobiKwik, Mokobara, Oyo Rooms, Park+, Pine Labs, Plum, Practo, Quick Heal, RazorPay, Smallcase, Truecaller, Unacademy, WakeFit, Wildcraft, Zoomcar, 1MG and more.