Peak XV revealed on Friday that it has secured $1.3 billion for a set of new funds concentrated on India and Asia. Managing over $10 billion in assets, the firm is honing its strategy around artificial intelligence and cross-border investments as competition for regional deals grows more intense. These funds will be allocated across its India seed and venture funds, as well as its APAC vehicle. Most of the capital is designated for India, with plans to invest it over the coming two to three years, according to managing director Shailendra Singh in a Friday interview.

The firm separated from Sequoia Capital in 2023 to isolate the India-focused segments of Sequoia’s portfolio. It now supports more than 450 portfolio companies in fintech, software, and consumer internet, ranging from seed to growth stages.

This fundraising coincides with New Delhi hosting the AI Impact Summit, which has attracted major technology players like OpenAI, Anthropic, and Google. At the event, General Catalyst detailed plans to invest $5 billion in the country over the next five years, significantly raising its prior commitment to the market.

Singh noted that Peak XV is not attempting to rival others dollar-for-dollar, stressing that the firm’s main goal is achieving strong returns rather than maximizing assets under management. He explained that Peak XV will continue to determine fund sizes based on where it identifies the best opportunity to produce "high-performing funds." He added that the firm is still establishing its presence in the U.S. and is selective about its competitive focus. "In the U.S. market, we are an underdog—and that’s great," Singh said, mentioning that the firm concentrates on areas where its expertise in software, developer tools, and fintech provides an advantage.

The recent fundraising follows a phase of leadership transitions at Peak XV, including the exits of senior partner Ashish Agrawal and investors Ishaan Mittal and Tejeshwi Sharma. The broader team consists of more than 30 full-time investors, with about a dozen leading investments across its markets.

Since its inception, Peak XV has returned over $7 billion in cash to investors, Singh stated, adding that 35 of its portfolio companies have gone public. He chose not to detail distributions following the firm’s split from Sequoia Capital.

Prior to this raise, Peak XV’s previous fund was set at $2.85 billion in late 2021, before the separation from Sequoia Capital. That amount was later trimmed to approximately $2.4 billion as part of what Singh called a disciplined approach to capital. The earlier pool included Peak XV’s India growth strategy, and Singh indicated the firm does not intend to launch a new growth fund until more of that available capital is deployed.

Singh anticipates directing the new funds mainly into AI, fintech, and consumer startups, while also observing emerging prospects in deep tech. The firm has already made more than 80 investments in AI startups. He also highlighted that U.S.-India connections are growing increasingly significant as more founders in the region build companies targeting global markets.