Peak XV has made $1.2 billion in the year since separating from Sequoia

Peak XV Partners, the largest enterprise capital fund operating in India, has realized about $1.2 billion in profits since separating from Sequoia last year, two sources accustomed to the matter told TechCrunch.

The investor has sold stakes in nearly a dozen portfolio corporations that went public in the past year, including food delivery company Zomato, cosmetics retailer Mamaearth and anti-spam company Truecaller.

It has also sold stakes in some private startups, including K12 Techno, Pocket Aces, and PingSafe, through secondary deals and M&A. The company’s current funding totals $2.85 billion.

Peak XV declined to comment.

The wave of exits comes as the Indian stock market hits record highs and the country’s stocks are trading at a big premium to other emerging markets. Macquarie analysts said in a recent note that 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.

The IPO window has also opened in the country, whilst the market for brand spanking new listings stays subdued in the U.S. and far of the world. Indian corporations have raised about $9 billion through IPOs this year, and more are expected to list before the end of the year, Bank of America analysts estimate.

The $500 million block trade in Peak XV portfolio company Five-Star Business Finance, which was initiated on Thursday, was accomplished at mid-11.30 am (India time).

Peak XV’s dominance in the region has generated a variety of interest and has piqued interest as a result of its scale and aggressive approach to investment. The company’s Surge program, which offers favorable terms and extensive resources for early-stage startups, has turn out to be a coveted entry point for young startups in India and Southeast Asia, somewhat eclipsing the appeal of Y Combinator.

Earlier this year, Peak XV informed its partners about the launch of an endowment fund supported by its own partners, which is an expression of great confidence in the company’s long-term strategy and the potential of the region.

The company’s journey, which began greater than a decade ago under the Sequoia banner, has culminated in a staggering $9 billion in assets under management, with a further $2 billion waiting to be distributed. Its portfolio includes greater than 400 corporations, greater than 50 of that are unicorns, and about 40 of which have annual revenues in excess of $100 million.

Peak XV has also facilitated more IPOs than another India-focused enterprise capital fund. Since 2020 alone, 15 corporations from its portfolio have gone public.

Last year, Sequoia split its China and India-Southeast Asia funds amid geopolitical tensions between the U.S. and China. The firms said they agreed to the split to avoid “increasing market confusion” and “portfolio conflicts between entities.”

The move sent shockwaves through the industry. Peak XV has since expanded beyond India and Southeast Asia, and has also expanded its team to the U.S.

In June this year, enterprise capital firm Matrix said it might also change the names of its subsidiaries in India and China.