Peak XV MD Piyush Gupta Quits; Will Launch Secondary-Focused Fund

Peak XV Partners’ managing director Piyush Gupta is reportedly leaving the firm by the end of this month. Gupta is said to be in the process of setting up a secondary-focused fund after stepping away from Peak XV, according to sources close to the development. 

Gupta joined Peak XV in 2017, when it was known as Sequoia India & Southeast Asia, as part of the strategic development team, which was a bridge between Peak XV’s portfolio companies, its investors or limited partners and other VC funds. 

The development was first reported by Techcrunch. According to the report, “Peak XV intends to work closely with him to facilitate transactions at its portfolio firms.” 

It is not yet known whether Gupta’s new firm will be registered as an alternative investment fund (AIF). Peak XV declined to comment on Gupta’s transition. 

During his tenure at Peak XV, Gupta claims to have been part of secondary market deals such as Peak XV’s stake sale in Zomato as well as Mastercard’s investment in Peak XV-backed Pine Labs. 

His LinkedIn profile also mentions his role in securing a sovereign wealth fund’s investment in CarDekho as well as the minority stake investment in BYJU’S by the Canada Pension Plan Investment Board (CPPIB), among other deals for Dailyhunt and Healthkart. 

Gupta’s plans to launch a secondary-focused fund comes amid a push by investors to find exits from some of their older bets. Most of the startups speculated to be in line for secondary deals are coming close to 10 years after incorporation and early investors are keen on an exit as these startups go for fresh funding.

Besides this, companies are going for secondary transactions to generate wealth for their employees through ESOP buybacks. 

• Malabar Investments is reportedly in discussions with the early investors of Mumbai-based D2C brand SUGAR, which could see RB Investments and India Quotient score a partial exit
• IPO-bound Capillary Technologies secured $95 Mn in secondary transactions as part of a Series D funding round of $140 Mn. Of this, $20 Mn has been earmarked for ESOP buyback.
• Early stage investor Chiratae Ventures is reported to have sold some of its stake in Lenskart, Bizongo, Rentomojo among others to private equity firm Madison India Capital for $70 Mn 
• Besides this, ecommerce unicorn Meesho is said to be in discussions with investors for a fresh infusion and a secondary round. Meesho is said to be eyeing a fresh infusion from Peak XV for its next round
• Another example is Eruditus, where some US-based investors are seeking an exit. Incidentally, Eruditus is a Peak XV portfolio company