Sequoia Capital Presses Early Split Button On India Unit

US-based venture capital firm Sequoia Capital has completed separation of some of its essential functions from its Indian affiliate, formerly known as Sequoia Capital India, a month earlier than anticipated.

The VC giant has completed the separation of key aspects such as IT systems, finance and accounting, a month ahead of the initially planned schedule, The Information reported.

Sequoia Capital has also completed the separation with its Chinese affiliates.

This separation will bring an end to a profit-sharing arrangement between Sequoia Capital and its Indian affiliate. Additionally, the separation paves the way for increased competition between Sequoia Capital and its Indian and Chinese counterparts.

Earlier in June, Sequoia Capital announced the rebranding and separation exercise, with Sequoia India & Southeast Asia being renamed Peak XV Partners.

As part of this exercise, Sequoia’s US, India and China operations are now run as independent entities, while Peak XV Partners operates as a fully independent firm managing its India and SEA portfolio.

“Our new name, Peak XV was the original name given to Mount Everest. To us, it signifies the relentless pursuit of audacious goals by our founders, while overcoming challenges along the way. It’s a new beginning for us as Peak XV, but unlike most beginnings, this is an opportunity for us to build on top of the foundation laid over the last 17 years,” Peak XV Partners’ managing director Shailendra Singh said at the time of announcement.

Peak XV inherited the $9 Bn+ assets under management from Sequoia India & Southeast Asia. It will also manage the portfolio across 13 funds which comprises 400+ companies.

As a prominent global venture capital firm, Sequoia faced substantial portfolio overlaps. The evolving dynamics of the market have prompted the strategic decision to separate its investment entities, sources told Inc42 earlier.

The decision was positively received by many founders within Peak XV’s portfolio as well. This move was seen as a means to alleviate operational friction commonly associated with shared back-office functions.

Peak XV Partners signed more than 10 term sheets in the first 10 weeks after its split from US-based parent Sequoia Capital. Currently, Peak XV’s portfolio includes unicorns such as Pine Labs, BharatPe, CRED, Groww and Unacademy, among others.