Latest news with #PeakXV
Mint
6 days ago
- Business
- Mint
Boom in AI fuels a flurry of startups
New Delhi: There's a scramble to register artificial intelligence (AI) focused companies, as India's public and private sectors embrace the technology that's transforming industries worldwide. Company registration data shows that 100-200 new AI-centric businesses take birth every month as tech entrepreneurs venture into health, agriculture, cloud, and robotics, powering the country's robust service sector. In April alone, 226 AI-focused businesses were incorporated, a jump from 86 a year earlier, data from the ministry of corporate affairs showed. That again was a big jump from a small base in the year before. Most of the new ventures in April were companies, while more than two dozen were limited liability partnerships (LLPs). April surge In the first three months of 2025, AI-focused business registrations steadily rose from 124 to 203, data showed. Many of these businesses feature 'AI' prominently in their names, as well as others like health, farm, cloud, robotics etc. Experts say India's combination of technology and software talent, moderating computing costs and innovation in solving social and business challenges are driving entrepreneurship in the AI space. Availability of free versions of large language models such as ChatGPT, wide usage of smartphones and low internet cost are aiding in AI's wider use. Also read | Whatfix expects AI products to contribute 20% of revenue by end of 2026 as it gears up for IPO India's AI startup wave is being shaped by an emerging coalition of seasoned professionals and heavyweight investors, said Rohit Pandharkar, technology consulting partner,EYIndia. Angel investors 'It's no longer just venture capital firms like Lightspeed, Peak XV, and Pi Ventures writing early cheques, but ex-founders and product leaders from Flipkart, Freshworks and Google India are also stepping in as angel investors, validating ideas and syndicating deals upstream. Sarvam AI's $41 million raise, backed by Lightspeed, Khosla Ventures, and Peak XV, is a case in point," said Pandharkar, referring to the transaction announced in 2023. Lightspeed Management Co., LLC on its website lists over 75 Indian companies it has invested in including Zepto, Razorpay and Sarvam AI, a generative AI start-up. Read this | Mint Primer: Dr AI is here, but will the human touch go away? "This blend of hands-on expertise and institutional capital is collapsing the funding cycle and helping technical founders commercialize faster," Pandharkar said. 'It's a smarter model, and one that's uniquely suited to India's AI ambitions." Extensive adoption AI is getting a boost given its extensive adoption by private and government sectors. The Income Tax Department and the Ministry of Corporate Affairs' compliance filing portal MCA21 deploy AI and data analytics for ensuring greater compliance. Businesses are using AI-driven chatbots to track orders and tackle customer grievances, replacing humans. The Digi Yatra initiative of the civil aviation ministry which makes navigation in airports easier, also uses AI for passenger identification. Generative AI is not just another technological cycle but a generational shift, N. Chandrasekaran, chairman of Tata Sons Ltd, wrote to shareholders of Tata Consultancy Services (TCS), India's largest IT services company in its latest annual report. TCS is planning to create a large pool of AI agents to work alongside humans and deliver solutions. Read this | Sundar Pichai to Mint: Pro-competitive AI, powered by deep research, is Google's path forward Meanwhile, the government has stepped up with the $1.25 billion IndiaAI Mission approved in March 2024, aiming to establish the nation as a global leader in the field. This comprehensive initiative rests on seven pillars, including building compute infrastructure, fostering future skills, financing startups, promoting innovation centres, creating data platforms, developing applications, and ensuring safe and trusted AI. AI offers multiple entrepreneurship opportunities which include building applications or utilities and offering consulting services, said Kashyap Kompella, AI analyst and founder of tech consultancy RPA2AI, which has offices in Bangalore, London, Boston and in Washington DC. 'As Sam Altman, CEO of OpenAI has boldly articulated, AI may make it possible for a one-person company to become a billion-dollar unicorn. In that sense, AI offers great opportunities and growth potential. AI has certainly lowered the entry barrier for entrepreneurship by reducing the resource requirement for starting a business. However, competition in this sector is as intense as in the rest of the technology focused industries which will determine the success rate of businesses," explained Kashyap Kompella. But is a bubble forming? Pandharkar of EY said the broader investment landscape shows rising capital flows and expanding interest across verticals and yet, there are signs of caution. 'Investors are shifting from hype to fundamentals. Rather than a clear bubble, the market appears to be in a maturation phase where investors are becoming more selective, focusing on companies with viable business models generating revenue and proven use cases than speculative AI applications," he said. 'The divergence between the rapid growth in startup numbers and the more modest growth in funding suggests a market that is rationalizing even as it expands. Capital is plentiful but more selective than 2021 highs, so any correction in 2025-26 is likely to be a healthy deflation rather than a bubble burst," said Pandharkar. Multilingual India-specific large language models, public-sector adoption of AI, security analysis and software development assistance keep long-term value creation intact, he said. And read | End of FOMO: Venture capital firms turn cautious over AI startup hype; demand models with clear returns and impact Company incorporation data broadly show that two out of three companies registered survive in the long-term. AI has emerged as a core driver of India's transformation as a global digital powerhouse, the Cellular Operators Association of India said in a report it brought out with KPMG last year.
Mint
26-05-2025
- Business
- Mint
Groww IPO: Stock broking firm files DRHP via confidential filing route for up to $1 billion public issue
Groww IPO: Stock broking firm Groww has filed draft papers with the markets regulator Sebi for an initial public offering (IPO) estimated to be around USD 700 million to USD 1 billion through a confidential pre-filing route, people familiar with the development said on Monday. The IPO is a combination of a fresh issue of equity shares and an offer for sale (OFS) component. The company, which is backed by marquee investors like Peak XV, Tiger Capital, and Microsoft CEO Satya Nadella, plans to use proceeds of the IPO for investment in technology development and business expansion, people familiar with the development told PTI. To manage the offering, Groww has appointed JP Morgan India Private Ltd, Kotak Mahindra Capital Company Ltd, Citigroup Global Markets Private Ltd, Axis Capital Ltd, and Motilal Oswal Securities Ltd. Founded in 2016, Groww has quickly risen to become the fastest-growing retail broking platform in India in FY25, holding over 26 per cent market share as of March 2025. During FY25, the platform added 34 lakh new accounts, with its active client base growing from 95 lakh in March 2024 to 1.29 crore in March 2025 -- a 36 per cent year-on-year increase. Its market share also expanded from 23.28 per cent to 26.26 per cent over the same period, according to data from the National Stock Exchange (NSE). This impressive growth is largely attributed to Groww's mobile-first, user-friendly experience and its strong emphasis on investor education, which has resonated with retail investors across the country. The platform has become a frontrunner in digitising retail investing in India, with its customer-centric approach enabling seamless access to financial markets and promoting an informed investing culture. Groww turned profitable in FY23, posting a profit of ₹ 449 crore and a revenue of ₹ 1,277 crore. The momentum continued in FY24 with an operating profit of ₹ 535 crore and a revenue of ₹ 3,145 crore, indicating consistently strong business performance. However, the company reported a net loss of ₹ 805 crore in FY24, primarily due to a one-time tax payment of ₹ 1,340 crore related to its India domicile move. Earlier this month, Singapore's sovereign wealth fund GIC sought fair trade regulator CCI's approval to acquire a 2.14 per cent stake in Billionbrains Garage Ventures, the parent company of Groww. Groww has opted for the confidential pre-filing route, which allows it to withhold public disclosure of IPO details under the draft red herring prospectus (DRHP) until later stages. This route is gaining traction among Indian firms aiming for flexibility in their IPO plans. Earlier this month, commerce enablement platform Shiprocket filed IPO papers through the same route. In recent months, Tata Capital, edtech unicorn PhysicsWallah and Imagine Marketing, the parent company of wearables brand boAt, also chose confidential filings. In 2024, food delivery giant Swiggy and retail chain Vishal Mega Mart floated their IPOs following similar filings. Online hotel aggregator OYO had used this route in 2023 but did not proceed with its IPO. Tata Play, formerly Tata Sky, was the first Indian company to utilise the confidential filing option in December 2022 and received Sebi's observation letter in April 2023, though it later withdrew from the public issue. Market experts note that the confidential pre-filing route offers companies greater flexibility and reduces the pressure to go public quickly. Unlike the traditional route, which requires companies to launch their IPOs within 12 months of receiving Sebi's approval, the pre-filing route extends this window to 18 months from the receipt of final comments. Additionally, firms can modify the primary issue size by up to 50 per cent until the updated DRHP stage.
Economic Times
07-05-2025
- Business
- Economic Times
InfoEdge has recorded 36% return on startup investments since 2007: Sanjeev Bikhchandani
ETtech Info Edge India founder and vice-chairman Sanjeev Bikhchandani parent InfoEdge has achieved 36% returns from its early-stage investments in startups since 2007, said founder and vice chairperson Sanjeev Bikhchandani. In a letter to shareholders on Wednesday, the serial entrepreneur said InfoEdge's Alternative Investment Fund (AIF) investments alone have yielded 18.7% company and its affiliates have invested a total of Rs 3,959.16 crore, with the fair market value of the invested capital growing to Rs 36,855.40 crore today. A lot of these returns were realised in the last five to seven years, as the oldest investments—Zomato and Policybazaar—started to become mature, Bikhchandani wrote. There is a lot of unrealised value in more recent investments, he added. InfoEdge's portfolio companies, including TrueMeds, Geniemode, Aftershoot, Mirana, Osfin and InPrime, have received follow-on investments from investors such as Accel, Peak XV, Matrix, Westbridge, Tiger Global, Multiples PE, Fundamentum and others. Bluestone Jewellery, another major investment, has received follow-on funding from Prosus, Peak XV and Steadview Capital, and has filed draft papers for an Indian listing. InfoEdge has invested in 111 companies, of which 76 have tapped institutional co-investors or follow-on investors, Bikhchandani noted. "Business growth, growing market share, externally led follow-on rounds by marquee investors etc., are all strong markers of potential value that will get realised in future when these companies list in the public markets (our preference) or get acquired. Intermediate IRRs (internal rates of return) give some indication as to what may be possible tomorrow, but early stage investing tends to be a game of catching potential outliers early. We believe we have a fair number of those across the investments," Bikhchandani stated. InfoEdge started investing in startups with Zomato (now Eternal) and PB Fintech. As of March 2025, the company's holdings in the two listed companies were worth Rs 31,500 crore against its investment of Rs 1,075.18 crore. Ustraa, another of its early investments, has now been subsumed in VLCC. InfoEdge has live investments to the tune of Rs 150.59 crore in IPO-bound Bluestone through two of its Read: Sanjeev Bikhchandani on BluSmart: 'Drivers are worst hit'
Time of India
07-05-2025
- Business
- Time of India
InfoEdge has recorded 36% return on startup investments since 2007: Sanjeev Bikhchandani
Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Live Events parent InfoEdge has achieved 36% returns from its early-stage investments in startups since 2007, said founder and vice chairperson Sanjeev Bikhchandani . In a letter to shareholders on Wednesday, the serial entrepreneur said InfoEdge's Alternative Investment Fund (AIF) investments alone have yielded 18.7% company and its affiliates have invested a total of Rs 3,959.16 crore, with the fair market value of the invested capital growing to Rs 36,855.40 crore today.A lot of these returns were realised in the last five to seven years, as the oldest investments—Zomato and Policybazaar—started to become mature, Bikhchandani wrote. There is a lot of unrealised value in more recent investments, he portfolio companies, including TrueMeds, Geniemode, Aftershoot, Mirana, Osfin and InPrime, have received follow-on investments from investors such as Accel , Peak XV, Matrix, Westbridge, Tiger Global, Multiples PE, Fundamentum and others. Bluestone Jewellery, another major investment, has received follow-on funding from Prosus, Peak XV and Steadview Capital, and has filed draft papers for an Indian has invested in 111 companies, of which 76 have tapped institutional co-investors or follow-on investors, Bikhchandani noted."Business growth, growing market share, externally led follow-on rounds by marquee investors etc., are all strong markers of potential value that will get realised in future when these companies list in the public markets (our preference) or get acquired. Intermediate IRRs (internal rates of return) give some indication as to what may be possible tomorrow, but early stage investing tends to be a game of catching potential outliers early. We believe we have a fair number of those across the investments," Bikhchandani started investing in startups with Zomato (now Eternal) and PB Fintech . As of March 2025, the company's holdings in the two listed companies were worth Rs 31,500 crore against its investment of Rs 1,075.18 crore. Ustraa, another of its early investments, has now been subsumed in VLCC. InfoEdge has live investments to the tune of Rs 150.59 crore in IPO-bound Bluestone through two of its funds.
Mint
28-04-2025
- Business
- Mint
Peak XV Partners seeks AI edge with strategic investments in US funds, takes LP route
MUMBAI : Bengaluru-headquartered Peak XV Partners has made a clutch of investments over the past 12 months in a handful of seed and early-stage US funds, varying in size between $1 million and $10 million, a person with knowledge of the development said on condition of anonymity. The names of the funds could not be ascertained. The move is part of the venture capital (VC) firm's broader strategy to deepen its network and identify early trends on artificial intelligence (AI) where the US is the market leader, the person cited above said. To be sure, Peak XV (pronounced Peak 15) has also made direct investments in AI-related companies in the US market in the past two years since it separated with Sequoia Capital. Recent American investments include Supabase (US-Singapore), Atomicwork (US), Hightouch (US), Luminai (US), Nirmata ( US), RapidCanvas (US), among others. However, the person cited above said that building fund relationships will allow Peak XV to be ahead of the curve on new AI trends and can potentially lead to new introductions with the founders of upcoming firms where the firm might be able to invest in. Peak XV is also a limited partner (LP) in former executive Piyush Gupta's fund launched last November, and expects to be an investor in more funds launched by other former company executives, the person added. Separately, the firm is in early talks to raise up to $1.4 billion in a new India-SEA (Southeast Asia) fund, its first since the split with its parent. The fund is likely to be raised by end of the current financial year, people with knowledge of the development said. Making fund investments is a tried and tested way for new VC and private equity (PE) firms to enter a new market. When global investors first started investing in India, they made several LP investments in Indian fund managers to first understand the market, before they started making direct investments. Partners at Peak have been investing since 2006 and had access to the US market when they were part of Sequoia Capital. However, this access ended in June 2023, when Sequoia split into three globally. The India and South East Asia team became Peak XV Partners. 'Investing in funds helps in building out the ecosystem and to track larger opportunities in those markets better," said Kashyap Chanchani, founder and managing partner, The Rainmaker Group, an Indian investment bank. 'Firms get access to proprietary deals as well as widen the network and track trends besides simply making returns." In turn, the investee companies of these funds, too, stand to gain access to the India market and service base, according to Chanchani. For the past two years, Peak XV has been building out its US presence to recoup the access it had when the firm was part of Sequoia Capital. One key reason is to help its portfolio companies, which are already based in the US or have links to the US market. Peak XV has a portfolio of more than 400 companies across financial services, software and AI, and consumer internet, and across stages–seed, venture and growth. Nearly 150 companies have ties to the US market–either for market access or they were founded by Indian origin people incorporating in the US. Soon after the split in 2023, Peak XV hired Jaime Bott, a former talent executive at Sequoia Capital, to help hire talent for its portfolio companies in the US. In April 2024, it hired Dini Mehta and Chris Meritt as operating partners in the US. Earlier this month, it hired Arnav Sahu as partner and the firm's first investment team member in the US. Sahu was previously with Y Combinator. He has also founded a fintech app, BondGrid, and has worked at Spark Capital and Blackstone, PeakXV said earlier this month. Since the split with Sequoia Capital, Peak XV has seen at least half a dozen top executives from its India and SEA team leave. In recent months, partner Shailesh Lakhani and managing directors Abheek Anand and Anandamoy Roychowdhary left the firm. Last November, Piyush Gupta, managing director at Peak XV, left the firm to launch his own secondaries fund Kenro Capital. Other top executives such as Shweta Raj Kohli and Gayatri Yadav also left the firm. Last month, Shreyansh Thakur, an executive at PeakXV, also made an exit. Besides employee churn, PeakXV announced last October that it was cutting its management fee for its growth fund to stay competitive in the market. It also returned 16% of its capital from across funds raised for India and SEA, citing an overheated market. The VC major has sold stakes in its portfolio companies that were either headed for public market listings or pared down stakes in already listed firms such as Ixigo, Awfis, Go Digit General Insurance, Blackbuck, Zomato , Mamaearth, Truecaller, Indigo Paints , Five Star Business Finance, and Mobikwik, among others. The firm also took some money home by selling either partial or full stakes in its unlisted portfolio such as Rebel Foods, Healthkart, Finova, K12 Techno, and Cloudnine Hospitals. In all, the firm has clocked over $1.2 billion in exits in the past 12-15 months.
