Peak XV Has INR 16K Cr Dry Powder, Want More Founders To Focus On AI: Rajan Anandan

Amid the ongoing funding winter, Peak XV Partners MD Rajan Anandan has said that the VC firm has a dry powder of INR 16,000 Cr to invest in Indian startups.

Speaking at the ‘Global IndiaAI Summit’, Anandan said, “Our firm has over INR 16,000 Cr of dry powder. We just want more people starting up in AI.”

He added that Peak XV has invested in 25 AI startups so far. 

Highlighting that capital is not an issue, Anandan said the VC and PE ecosystem have $20 Bn to invest in Indian startups, adding that AI is the most important theme right now and investors are bullish on startups in this sector.

He also called for skilling the Indian workforce in AI and said there is a need for more AI researchers. 

The Peak XV MD said that the country produces the highest number of STEM graduates every year and over 20% of global AI researchers are of Indian origin.

Anandan also refuted the argument that Indian VCs are risk averse. He pointed out that Peak XV invested in two semiconductor companies, a green hydrogen recycling company, and a spacetech company focused on space debris in the past 15 months. 

Highlighting the firm’s wide area of interest, Anandan said that Peak XV also invested in data cataloguing and governance company Atlan. 

Founded in 2006, Peak XV is a leading VC firm which invests in India, Southeast Asia and beyond. It counts unicorns like CRED, Meesho, Groww, Mamaearth, and Unacademy in its portfolio.

In June last year, Sequoia Capital spun off Sequoia India & Southeast Asia and the latter was rebranded as Peak XV. 

The VC firm inherited over $9 Bn in over 400 companies stretching across 13 separate funds. Last year, it said that its portfolio companies achieved over $100 Mn in revenues. 

Earlier this year, Peak XV launched a permanent capital vehicle ‘Peak XV Anchor Fund’ to enable the firm’s leadership to invest in future funds as well as partner with other fund managers.