Three Peak XV veterans launch Mettle Capital with $350–400M target for Indian startups
What’s the deal? Three former managing directors at Peak XV Partners — the India and Southeast Asia arm of Sequoia Capital — have launched a new venture capital firm called Mettle CapitalDealroom has a profile for this one. Try Dealroom →, targeting a debut fund of $350M–$400M.
The firm is led by Tejeshwi SharmaDealroom has a profile for this one. Try Dealroom →, Ashish AgrawalDealroom has a profile for this one. Try Dealroom →, and Ishaan MittalDealroom has a profile for this one. Try Dealroom →, who between them spent more than a decade each at Peak XV. All three have announced their departures from the firm. Mettle Capital will focus on backing Indian startups, with an emphasis on early-stage companies.
Sharma joined Peak XV in 2012 as a 25-year-old and rose to managing director over 13 years, backing companies including Atlan, Chargebee, FloBiz, Hevo DataDealroom has a profile for this one. Try Dealroom →, Hightouch, Moglix, SaaS Labs, Scapia, and Whatfix — several of which are approaching or surpassing $100M in revenue.
Agrawal and Mittal, who have known each other for nearly two decades, also backed a generation of breakout Indian startups during their time at Peak XV.
Why now? India’s startup ecosystem has matured significantly since Sharma joined Peak XV in 2012. Several of the companies he backed are now approaching IPO readiness, and the broader Indian tech market is producing more durable, revenue-generating businesses than at any previous point in the country’s startup history.
The trio believe the conditions are right to build an independent firm focused exclusively on India, rather than operating within a global fund structure.
The departure also follows a broader pattern of senior talent spinning out of established VC firms to launch independent vehicles — a trend that has accelerated as the Indian venture market has deepened and LP appetite for India-focused funds has grown.
What could go wrong? Spinning out of a prestigious firm like Peak XV carries both advantages and risks. The brand association helps with fundraising and founder access, but Mettle Capital will need to demonstrate that its investment returns are driven by the team’s own judgment — not by the institutional advantages that come with being part of Sequoia’s global network.
A $350M–$400M debut fund is also a significant target for a first-time fund from a new firm, even with highly credentialed founders.
India’s VC market is competitive and increasingly crowded, with both domestic and international funds competing for the same quality deals at the early stage.
The signal: The launch of Mettle Capital is a signal of India’s venture ecosystem coming of age. When Sharma joined Peak XV in 2012, India’s digital economy was still early stage. Thirteen years later, senior partners from one of the country’s most successful VC franchises are confident enough in the opportunity to back themselves with an independent firm.
This kind of talent spinning out to start new funds is a hallmark of mature venture ecosystems — it happened in the US in the 1990s and 2000s, and is now happening in India.
Sources:
Economic Times
Entrackr
SiliconIndia
Inc42
Tejeshwi Sharma’s LinkedIn post
Image credit:
Tejeshwi Sharma
J.V.
