In Mamaearth’s highly sought-after IPO, Peak XV Partners has achieved its fourth investment with a return of ten times or more within six months of its separation from the Sequoia family.
According to an analysis of IPO documents by TechCrunch, Peak XV has realized a tenfold return on its investment in Mamaearth. This marks Mamaearth as the 20th IPO for Peak XV in India and Southeast Asia, a number significantly surpassing the IPO count of other venture firms in the region.
Peak XV has sold its remaining shares in Zomato, concluding a journey of more than tenfold returns with the food delivery startup that began a decade ago. This full exit and share sale, which occurred last week, had not been previously reported, and Zomato has not responded to requests for comment. Following the surprise profit report for the second quarter, Zomato’s shares surged by 10% on Friday afternoon.
Additionally, Peak XV recently realized a return of more than twelve times on its investment in K12 Techno Services, a startup it initially backed approximately a decade ago in partnership with private equity firm Kedaara Capital. Peak XV still holds some shares in the startup, according to filings.
Peak XV has chosen not to provide a comment on these developments.
These returns represent a significant accomplishment for the firm, which oversees a capital pool of $2.5 billion, surpassing the capital volume of any other venture capital firm with a focus on India and Southeast Asia. With over 400 investments in its portfolio, including more than 50 unicorns and around 40 companies with annual revenues exceeding $100 million, Peak XV continues to strengthen its position in the region.
In the post-Sequoia era, Peak XV has increased its deal-making activities, even as the broader private markets remain somewhat sluggish. The firm’s executives conveyed their optimism about the region to their portfolio founders in August and indicated a more aggressive approach.
Furthermore, Peak XV recently adjusted the estimated value of four of its six funds, as disclosed by the University of California Regents, an LP in Peak XV funds.
Shortly after Sequoia US and its India and SEA branch announced their separation, Peak XV also divested its shares in Go Colors, almost two years after the company went public. The analysis indicates that it achieved a return of over fifteen times on its investment in Go Colors. The sale of shares in the security firm Quick Heal also resulted in overall profits, although the exact gains remain undisclosed.
Currently, Peak XV is exploring opportunities to expand its focus to Australia and engage in deals in the United States. The recent early-stage Surge cohort from Peak XV featured two Australian startups. Neil Shen, who heads Sequoia China, previously assessed a majority of the Australian deals, according to a different source familiar with the matter. Sequoia China also separated from the broader Sequoia family in June of this year.
