Peak XV Companions, the most important India-focused enterprise fund, has realized about $1.2 billion in exits since its separation with Sequoia final yr, two sources conversant in the matter informed TechCrunch.
The investor has bought stakes in almost a dozen portfolio corporations that went public up to now yr, together with meals supply group Zomato, cosmetics retailer Mamaearth, and spam safety agency Truecaller.
It has additionally bought holdings in some non-public startups, together with K12 Techno, Pocket Aces and PingSafe, by secondary transactions and M&A. The agency’s present funds complete $2.85 billion.
Peak XV declined to remark.
The flurry of exits comes as India’s inventory market reaches report highs, with the nation’s equities buying and selling at a big premium to different rising markets. Macquarie analysts wrote in a current word that India’s price-to-earnings ratio stands at about 21 occasions, in contrast with 10 occasions for rising markets general, 14.5 occasions for international markets, 17 occasions for the U.S., and eight occasions for China.
The IPO window has additionally cracked open within the nation, although the marketplace for new debuts stays subdued within the U.S. and far of the world. Indian companies have raised about $9 billion by way of IPOs this yr, and extra are anticipated to record earlier than the yr ends, Financial institution of America analysts estimate.
A $500 million block commerce in 5-Star Enterprise Finance, a Peak XV portfolio firm, that began on Thursday was greater than half-way completed by 11.30 a.m. India customary time.
Peak XV’s dominance within the area has drawn intense curiosity and scrutiny, owing to its scale and aggressive funding strategy. The agency’s Surge program, which presents favorable phrases and in depth sources to early-stage startups, has grow to be a coveted launchpad for younger startups in India and Southeast Asia, considerably eclipsing the attraction of Y Combinator’s providing.
Earlier this yr, Peak XV knowledgeable its restricted companions that it was launching a perpetual fund backed by its personal companions, signaling a excessive diploma of confidence in its long-term technique and the area’s potential.
The agency’s journey, which started over a decade in the past underneath the Sequoia banner, has culminated in a staggering $9 billion of belongings underneath administration, and it has a further $2 billion that’s but to be deployed. Its portfolio spans over 400 corporations, of which greater than 50 are unicorns, and about 40 have reached annual revenues exceeding $100 million.
Peak XV has additionally facilitated extra IPOs than some other India-focused enterprise fund. Since 2020 alone, 15 of its portfolio corporations have efficiently gone public.
Sequoia final yr cut up its China and India-Southeast Asia funds amid geopolitical tensions between the U.S. and China. The companies mentioned that they had agreed to separate to keep away from “rising market confusion” and “portfolio conflicts throughout entities.”
The transfer despatched shockwaves by the trade. Peak XV has since broadened its focus to markets past India and Southeast Asia, and has additionally expanded its staff to the U.S.
In June this yr, enterprise agency Matrix mentioned that it might additionally rebrand its India and China associates.
