16-05-2025
Peak XV Partners nets over ₹1,200 crore after exiting stake in Porter, clocking 11-fold return
Mumbai: Peak XV Partners netted over ₹1,200 crore after exiting its investment in logistics company Porter's latest funding round, a person familiar with the matter said. The profit was an over 11-fold return on investments of ₹116 crore across multiple rounds over the past decade.
'The company has grown tremendously since our Series A investment in 2015 to now become worth over a billion dollars. After a decade-long partnership with the team, we have exited our investment and express our heartfelt gratitude to the founding team, Uttam Digga, Pranav Goel, and Vikas Choudhary, for being wonderful partners," a spokesperson for Peak XV said, without disclosing the exit value.
Porter declined to comment on the stake sale.
The Bengaluru-based company joins a growing list of unlisted firms including Rebel Foods, Healthkart, Finova, K12 Techno and Cloudnine Hospitals where Peak has sold partial or full stakes.
The venture capital firm has also sold stakes in companies that were headed for public listing or has pared 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.
Peak has generated about $3.6 billion in cash exits over the past five years and over 30 portfolio companies have gone public. In 2024 alone, it recorded exits to the tune of $1.5 billion, exceeding the amount it invested in the timeframe, the person added.
Also Read | Wellington Management may lead Porter's $100 million round in logistics push
Porter's round, which was led by Kedaara Capital and Wellington Management and valued the company at $1.2 billion, had a mix of primary and secondary stake sales, with others such as Kae Capital also exiting.
Porter said last week it plans to use the funds raised to expand operations, build teams, and develop technology and operational excellence while continuing to set up a greener logistics network aligned with India's decarbonisation efforts.
Peak plans
Meanwhile, Peak is in early talks to raise up to $1.4 billion by the end of the current financial year for its first India-SEA (Southeast Asia) fund since the split with parent Sequoia Capital. The VC firm expects at least two dozen companies to tap the public market in the next 12-18 months, according to the person.
Also Read | Mint Explainer: Can Uber shake up the market Porter dominates?
The investment firm expects to back more funds launched by former company executives. Investing in funds is a tried and tested way for new VC and private equity firms to enter a new market. When global investors first started investing in India, they made several investments in Indian fund managers to 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 Southeast Asia team became Peak XV Partners. In the past year, the venture capital firm has invested in a handful of seed and early-stage US funds, varying in size from $1 million to $10 million.
For the past two years, Peak XV has been building its US presence to regain the access it had as part of Sequoia. One key reason is to help its portfolio companies that are based in the US or have links to the US market.
Also Read | Choppy markets take toll on pre-IPO deal talks
It has a portfolio of more than 400 companies across financial services, software and artificial intelligence (AI), and consumer internet, and across stages—seed, venture and growth. Almost 150 companies have ties to the US market—either for market access or founded by Indian origin people incorporated in the US.
