Peak XV Partners Faces Major Exodus as Senior Partners Launch Rival Firm

When three senior partners with a combined 29 years of experience walk out together, it's rarely just about money.

Peak XV Partners, one of India and Southeast Asia's most prominent venture capital firms, is grappling with a significant leadership exodus. The departure centers around Ashish Agrawal, a 13-year veteran who's taking two other partners with him to start a competing firm.

The Breakup Behind Closed Doors

Shailendra Singh, Peak XV's Managing Director, described the split as stemming from "internal disagreement" with Agrawal that led to a "mutual decision to part ways." He declined to elaborate on specifics, citing privacy and wanting to "be classy about it."

The departing trio represents substantial institutional knowledge. Agrawal's 13+ years at the firm, combined with Ishaan Mittal's9+ years and Tejeshwi Sharma's7+ years, means Peak XV is losing nearly three decades of collective experience in a single blow.

Agrawal framed the move differently on LinkedIn, describing it as taking "the entrepreneurial plunge" and building "a new institution with longtime partners." The diplomatic language masks what appears to be a fundamental disagreement about Peak XV's direction.

Timing Couldn't Be More Ironic

The exodus comes during Peak XV's most successful year on record. Five portfolio companies—Groww, Pine Labs, Meesho, Wakefit, and Capillary Technologies—went public in late 2025, generating roughly $3.33 billion in unrealized gains and $310.61 million in realized returns.

Agrawal himself led the investment in Groww, one of Peak XV's most prominent IPO successes in 2025. His track record across fintech, consumer, and software investments makes his departure particularly stinging for the firm.

The AI Pivot Creates Friction

The timing suggests the disagreement may center on Peak XV's aggressive push into AI investing. The firm has made about 80 AI-related investments and is preparing to open a U.S. office within 90 days—a significant strategic shift from its traditional India-Southeast Asia focus.

Singh emphasized that "AI would reshape venture investing more profoundly than previous technology shifts," arguing for investors with "deep technical understanding rather than generalist experience." The firm is actively recruiting "AI-native talent," including researchers and engineers with machine learning backgrounds.

This technical pivot may have clashed with the departing partners' investment philosophy. Agrawal's success came from traditional sectors like fintech and consumer businesses—areas that might seem less relevant in an AI-first strategy.

A Pattern of Senior Departures

This isn't an isolated incident. Peak XV has experienced broader leadership churn over the past 12 months. Investment leaders Harshjit Sethi and Shailesh Lakhani left the India team, while Abheek Anand and Pieter Kemps departed from Southeast Asia operations. Marketing, policy, and operations teams have also seen changes.

Singh dismissed market speculation that partners responsible for Peak XV's biggest exits were leaving, calling it "not statistically true." However, the pattern suggests deeper organizational tensions as the firm transitions from its Sequoia Capital roots to an independent entity focused on AI.

The New Competition

Agrawal's new firm poses an interesting competitive threat. With deep relationships in India's startup ecosystem and a track record of successful exits, the trio could attract both entrepreneurs and limited partners who prefer Peak XV's traditional investment approach over its AI pivot.

The competition will be particularly fierce in India's fintech and consumer sectors, where Agrawal built his reputation. His ability to maintain relationships with existing portfolio companies during the board transition period could influence future deal flow.

Institutional vs. Individual Success

Peak XV's response reveals the tension between institutional continuity and individual achievement in venture capital. Singh emphasized that the firm's success doesn't "hinge on any single individual," promoting Abhishek Mohan to general partner and Saipriya Sarangan to chief operating officer.

Yet venture capital remains a relationship-driven business where individual networks and judgment matter enormously. The question isn't whether Peak XV can continue operating—with seven general partners and over $10 billion in assets, it clearly can. The question is whether its AI-first strategy will generate the same returns as its traditional approach.