Peak XV Companions, the biggest India-focused enterprise fund, has realized about $1.2 billion in exits since its separation with Sequoia final 12 months, two sources aware of the matter instructed TechCrunch.
The investor has offered stakes in almost a dozen portfolio firms that went public previously 12 months, together with meals supply group Zomato, cosmetics retailer Mamaearth, and spam safety agency Truecaller.
It has additionally offered holdings in some non-public startups, together with K12 Techno, Pocket Aces and PingSafe, via 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 file highs, with the nation’s equities buying and selling at a major premium to different rising markets. Macquarie analysts wrote in a current word that India’s price-to-earnings ratio stands at about 21 instances, in contrast with 10 instances for rising markets general, 14.5 instances for international markets, 17 instances for the U.S., and eight instances for China.
The IPO window has additionally cracked open within the nation, despite the fact that the marketplace for new debuts stays subdued within the U.S. and far of the world. Indian companies have raised about $9 billion through IPOs this 12 months, and extra are anticipated to record earlier than the 12 months 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 performed by 11.30 a.m. India normal time.
Peak XV’s dominance within the area has drawn intense curiosity and scrutiny, owing to its scale and aggressive funding method. The agency’s Surge program, which affords favorable phrases and intensive 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 12 months, 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 property underneath administration, and it has a further $2 billion that’s but to be deployed. Its portfolio spans over 400 firms, 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 every other India-focused enterprise fund. Since 2020 alone, 15 of its portfolio firms have efficiently gone public.
Sequoia final 12 months 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 via the trade. Peak XV has since broadened its focus to markets past India and Southeast Asia, and has additionally expanded its workforce to the U.S.
In June this 12 months, enterprise agency Matrix mentioned that it might additionally rebrand its India and China associates.
