Silicon Valley-based Sequoia Capital is separating from its partnerships in India and China, which have now rebranded as Peak XV Partners and HongShan respectively. The move signals the fund’s shift away from Asia.
What Happened? Per a Reuters report, the split comes amidst ongoing geopolitical tensions between the U.S. and China. Sequoia India head Shailendra Singh will lead the newly named Peak XV Partners and the rebranding process should complete by March next year.
Sequoia told its investors that increasing complexities in managing a decentralised global investment business and conflicts among its various portfolios led to the restructuring. The global partnership, which previously shared profits from Sequoia India and China, will cease this practice. Additionally, the funds will not engage in joint investments in the future.
Sequoia has been investing in India since 2005 and closed its first fund of $400 million (₹3,305 crore) in 2006. In the past 17 years, Sequoia India and Southeast Asia raised 13 funds, and invested in over 400 startups, with over 50 companies valued at $1 billion (₹8,264 crore).
The firm’s latest $2.85 billion (₹23,553 crore) fund for the region will continue under Peak XV. With $9 billion (₹74,378 crore) worth of assets under management, the firm still has $2.5 billion (₹20,660 crore) of uninvested capital which it plans to deploy in startups across the India and Southeast Asia region.
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This separation from Sequoia Capital occurs at a time when several Indian portfolio companies, including BharatPe, GoMechanic, Zilingo, and Trell, face scrutiny for alleged corporate governance lapses.
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