Peak XV Partners, the largest India-focused enterprise fund, has realized about $1.2 billion in exits since its separation with Sequoia final year, two sources acquainted with the matter advised TechCrunch.
The investor has bought stakes in almost a dozen portfolio corporations that went public in the previous year, together with meals supply group Zomato, cosmetics retailer Mamaearth, and spam safety agency Truecaller.
It has additionally bought holdings in some personal startups, together with K12 Techno, Pocket Aces and PingSafe, by means of secondary transactions and M&A. The agency’s present funds whole $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 latest notice that India’s price-to-earnings ratio stands at about 21 occasions, in contrast with 10 occasions for rising markets total, 14.5 occasions for international markets, 17 occasions for the U.S., and eight occasions for China.
The IPO window has additionally cracked open in the nation, although the marketplace for new debuts stays subdued in the U.S. and far of the world. Indian companies have raised about $9 billion by way of IPOs this year, and extra are anticipated to checklist earlier than the year ends, Bank of America analysts estimate.
A $500 million block commerce in Five-Star Business Finance, a Peak XV portfolio firm, that began on Thursday was greater than half-way accomplished by 11.30 a.m. India normal time.
Peak XV’s dominance in the area has drawn intense curiosity and scrutiny, owing to its scale and aggressive funding strategy. The agency’s Surge program, which provides favorable phrases and in depth assets to early-stage startups, has grow to be a coveted launchpad for younger startups in India and Southeast Asia, considerably eclipsing the enchantment of Y Combinator’s providing.
Earlier this year, 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 an extra $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 year split 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 “growing market confusion” and “portfolio conflicts across entities.”
The transfer despatched shockwaves by means of the business. Peak XV has since broadened its focus to markets past India and Southeast Asia, and has additionally expanded its group to the U.S.
In June this year, enterprise agency Matrix mentioned that it would additionally rebrand its India and China associates.
