Piyush Gupta, an operating leader at Peak XV Partners, is set to leave the firm at the end of the month to establish his own fund, according to sources familiar with the matter. Gupta, who joined Peak XV in 2017, has played a significant role in the venture firm’s strategic development team. Prior to his time at Peak XV, he gained extensive experience in mergers, acquisitions, and IPOs during his tenure at Morgan Stanley and Deutsche Bank.
Although Gupta was not an investing partner at Peak XV, he made valuable contributions to several programs, including Pitstop. This initiative serves as a platform for global investors to connect with Peak XV’s portfolio startups on an annual basis. Gupta’s expertise is particularly beneficial in guiding early-stage companies through various programs such as UpSurge, where multiple companies have the opportunity to engage with multiple investors over a few days. At later stages, Gupta recognizes the significance of M&A as a pivotal moment in a company’s journey towards becoming a successful and enduring entity.
Peak XV Partners informed its limited partners about Gupta’s departure during their annual gathering last month. Additionally, the fund revealed its plans to launch a perpetual fund that will be financed by its investment partners and extended team. Despite Gupta’s decision to start his own secondary-focused fund, both parties are parting ways amicably. Peak XV intends to maintain a close working relationship with Gupta to facilitate transactions within its portfolio firms.
The rise of secondary transactions in India is becoming increasingly evident. Even Peak XV itself has witnessed exits through secondary transactions in recent years, with notable examples being Pine Labs and K12 Techno Services. As of November last year, TechCrunch reported that the firm held a 10x-plus multiple in its holdings of Mamaearth, Zomato, K12 Techno Services, and Go Colors.
Furthermore, TechCrunch reported earlier this year that SentinelOne acquired PingSafe, an early-stage startup in India, for over $100 million. Interestingly, PingSafe had raised less than $4 million prior to the acquisition deal and counted Peak XV’s Surge among its backers. This acquisition serves as a testament to the potential for significant returns in the Indian market, especially for startups supported by prominent venture firms like Peak XV.
The departure of Piyush Gupta from Peak XV Partners marks a notable transition in the firm’s leadership. However, it also presents an opportunity for Gupta to forge his path and make an impact through his secondary-focused fund. As the landscape of venture capital continues to evolve in India, the success of secondary transactions and strategic investments will play a crucial role in shaping the growth and longevity of startups in the country.