Peak XV Partners, India's largest venture fund, has invested about $1.2 billion since splitting with Sequoia last year, two sources familiar with the matter told TechCrunch.
The investor has sold stakes in nearly 10 portfolio companies that have gone public in the past year, including food delivery group Zomato, cosmetics retailer MamaEarth and anti-spam company TruCaller.
The company has also sold stakes in privately held startups such as K12 Techno, Pocket Ace and Pinsafe through secondary transactions and M&A. The company's current total cash flow is $2.85 billion.
Peak XV declined to comment.
The exodus comes as India's stock market has hit an all-time high and is trading at a significant premium to other emerging markets. India's price-to-earnings ratio is about 21 times, compared with 10 times for emerging markets overall, 14.5 times for global markets, 17 times for the U.S. and eight times for China, Macquarie analysts wrote in a recent report.
While the new listing market remains sluggish in the United States and much of the world, India is opening up new opportunities for IPOs. Indian companies have raised about $9 billion in IPOs this year, and analysts at Bank of America say they expect many more to go public by the end of the year.
The $500 million block deal for Peak XV portfolio company Five Star Business Finance, which began on Thursday, was more than half completed by 11:30 am Indian Standard Time.
Peak XV's scale and aggressive investment approach have given it a commanding presence in the region, garnering intense interest and scrutiny. Its Surge program offers favorable terms and deep resources to early-stage startups, making it a coveted launch pad for young startups in India and Southeast Asia, slightly more attractive than Y Combinator's offering.
Earlier this year, Peak XV informed its limited partners that it would be launching a partner-backed perpetual fund, signaling high confidence in its long-term strategy and the region's potential.
The firm, which began under the name Sequoia more than a decade ago, has grown to a staggering $9 billion in assets under management, with another $2 billion yet to be allocated, and has a portfolio of more than 400 companies, of which more than 50 are unicorns and around 40 have annual revenues exceeding $100 million.
Peak XV has facilitated more IPOs than any other India-focused venture fund, with 15 portfolio companies successfully going public since 2020 alone.
Sequoia split off its China fund and its India and Southeast Asia fund last year amid rising geopolitical tensions between the U.S. and China. The two firms said they agreed to the separation to avoid “greater market turmoil” and “inter-company portfolio disputes.”
The move sent shock waves through the industry, and Peak XV has since expanded its focus to markets outside of India and Southeast Asia, as well as expanding its team to the United States.
In June, venture firm Matrix announced it would also rebrand its affiliates in India and China.