Exodus at Peak XV, MSRTC’s Chhava Ride and Rainmatter Picks Up Stake

When Sequoia India rebranded itself as Peak XV Partners in June 2023, the move was marketed as a bold new era. An independent identity. A localized strategy and a sharper focus on India and Southeast Asia. But within just one year, the firm is witnessing something it never prepared the market for - decisive leadership exodus.

Since early 2024, over ten senior executives have exited the firm. These include Managing Directors Shailesh Lakhani and Abheek Anand, who had been with the firm for 17 and 12 years respectively, both leaving in February 2025. Piyush Gupta, another MD based in Singapore, left in April 2024 to launch Kenro Capital, a secondaries-focused fund. Meanwhile, Anandamoy Roychowdhary, who ran the Surge seed-stage program, left in late 2024. Key product and growth leaders like Anuj Sahai (CPO), Suraj Agarwalla (VP, Growth), and Vedant Trivedi (Surge Team) also walked out. Even the firm's public and brand-facing leaders - CMO Gayatri Yadav and Chief Public Policy Officer Shweta Rajpal Kohli - moved on to newer platforms. And in March 2025, Principal Shraeyansh Thakur quit to pursue entrepreneurship, followed by Anirudh Bose Mullick in July 2025.

This isn’t a reshuffle. It’s a pattern. And in venture capital, patterns matter.

Public statements from both sides are polite, carefully worded. There’s no bad blood, we’re told. No competitive clauses broken. Future co-investments aren’t ruled out. But what’s left unsaid is more revealing. At a time when Peak XV is flush with $2.5 billion in fresh capital and riding high on its reputation, why are its most trusted lieutenants walking away?

The answer lies in a mix of ambition, disillusionment, and deeper fissures in the India venture story.

Over the last few years, Sequoia’s India unit - now Peak XV - had come under intense scrutiny. Allegations surfaced about inflated valuations, preferential treatment to certain founders, and a culture that aggressively pumped up numbers to show artificial momentum. Multiple startups backed by the firm - especially in fintech and edtech - were called out for manipulating metrics, underreporting liabilities, or over-projecting user data. While Peak XV publicly distanced itself from any wrongdoing, insiders suggest that internal debates were intensifying. Some partners, especially those on the India side, grew uneasy.

There was also a strategic divergence brewing. Peak XV was no longer just India-focused. It had rapidly expanded into Southeast Asia and Australia, positioning itself as a pan-Asia platform. For India-based partners, this meant more alignment meetings, longer decision cycles, and less autonomy. For highly driven GPs used to making independent calls, this structure felt stifling. Combine that with the rising LP pressure to deliver returns in a high-interest-rate world, and the urge to break free grew stronger.

But this isn’t just a story about internal friction. It’s also a glimpse into the broader shift sweeping across venture capital in India. A generation of operators-turned-investors, who built their names inside large VC houses, now want to go solo. Build something personal. Own the upside. Craft their own brand. They’re done being custodians of someone else’s legacy. Now, they want to write their own.

The firm will, of course, survive. Peak XV still has strong partners, deep capital reserves, and solid LP backing. But its narrative is at risk. In venture capital, perception is leverage. And when multiple GPs walk away in succession, founders take note. They start to wonder if the people they built relationships with will still be around next year. They question who will fight for them inside the firm. And in this business, where conviction and chemistry drive decisions, such questions can turn the tide.

Meanwhile, the rise of spin-out funds is changing the startup financing landscape. These new, nimble vehicles, often sub-$150 million, promise faster decision-making and a more aligned founder-GP relationship. And they often come with the backing of powerful networks - angels, family offices, and even sovereign wealth funds looking for sharper exposure to India’s tech story.

As for the ones who’ve left, their real test begins now. Can they build funds that matter, in a market that’s crowded, competitive, and sometimes unforgiving? Can they do better than the firm they left behind - not just in returns, but in trust?

Time will tell. But for now, India’s startup ecosystem is watching closely. Because when the kingmakers step down from the throne, everyone wants to know - who will be crowned next?

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Chhava Aa Gayil Ba”: MSRTC Soon To Start App For Booking Auto, Bus Rides

Say goodbye to auto-haggling and bus-guessing, Maharashtra's MSRTC is launching Chhava Ride, an all-in-one app to book buses, autos, taxis, and even e-buses.

Built under the government’s aggregator policy, it’s a desi alternative to private platforms. This move comes hot on the heels of the transport minister’s jab at private players for fleecing both drivers and riders.

Read more here

“Waqt Rehte Kalti Maar Lo”: Z47, Tiger Global Cut Stakes In Ola Electric

In a quiet but telling move, Z47 and Tiger Global have pared down their holdings in Ola Electric, offloading 0.81% and 0.21%, respectively, this quarter.

The exits follow Hyundai and Kia’s recent stake dilution, marking a growing list of early backers stepping back.

Read more here

“Hum Saath Saath Hai”: Zerodha's Rainmatter picks up 10% stake in fund house Capitalmind

Zerodha’s Rainmatter has quietly picked up a 10% stake in Capitalmind, marking the fund house’s first institutional backing.

The move comes just as Capitalmind’s mutual fund arm reopens for business after raising ₹45 crore in its debut. With most early investors coming through direct plans any via Zerodha’s Coin - it feels less like a bet and more like a homegrown alliance taking shape.

Read more here

1. Fintech startup Zype has raised ₹90 Cr in a mix of equity and debt, with ₹56 Cr coming from Unleash Capital, Xponentia, and angel investor Tejinder Singh Hara. The fresh capital will likely fuel Zype’s lending ambitions as it navigates a competitive fintech landscape.
   Read more here

2. Hyderabad-based HYLENR has secured $3 Mn in funding co-led by Valour Capital and Chhattisgarh Investments to power its low-carbon heat generation solutions. The fresh funds will go toward launching its services beyond pilot phase and into the real-world energy market.
   Read more here

3. SuperGaming has raised $15 Mn at a $100 Mn valuation, marking a fivefold leap since its 2021 Series A round. With backing from Bandai Namco’s 021 Fund, the gaming studio is clearly levelling up.
   Read more here

4. The Sleep Company has secured ₹480 Cr in Series D funding from ChrysCapital and 360 ONE Asset to deepen its retail footprint and bolster R&D. From smart mattresses to smarter moves, the D2C brand is eyeing expansion across metros and beyond.
   Read more here

5. Visual telematics startup Cautio has closed its seed round at $3 Mn, backed by 8i Ventures, AU Small Finance Bank, and others. The funds will fuel its AI-driven R&D and help scale operations across India’s fleet ecosystem.
   Read more here

6. Debt recovery startup DPDZero has raised $7 Mn in a Series A round led by GMO Venture Partners to scale its multilingual AI collections agent. The Bengaluru-based firm is tackling delayed repayments with tech, not threat calls.
   Read more here

7. CodeKarma, founded by a former Amazon exec, has raised $2.5 Mn in pre-seed funding from Prosus, Accel, and others. The startup aims to help devs ship cleaner, faster code by sniffing out risks and deadweight with AI.
   Read more here