Former Peak XV Partners MDs — Ashish Agrawal, Ishaan Mittal, and Tejeshwi Sharma — have launched Mettle Capital, a new venture capital firm focusing on the Indian market. They are targeting to raise between $350 million and $400 million for their inaugural fund. This development follows their departure from Peak XV just a few months ago, marking a significant shift in their investment careers.
### The New Venture: Mettle Capital
Mettle Capital plans to concentrate on Series A and B funding rounds, with occasional seed investments in startups within the enterprise AI, deeptech, and consumer internet sectors. The firm is already in talks with limited partners across the US, Europe, and Asia, and is also seeking to attract domestic capital. With the intention of closing the fund by the next quarter, Mettle Capital aims to start deploying capital by September-October 2026.
Each year, Mettle Capital intends to make 5-6 high-conviction investments, aligning with a broader industry trend towards focused and concentrated investment strategies. The founders bring a wealth of experience from their tenure at Peak XV, having been involved in significant investments such as Groww, Razorpay, and Mamaearth, which have resulted in substantial returns and successful IPOs.
### Funding Environment and Competition
The launch of Mettle Capital is happening amid notable leadership changes at Peak XV, one of India’s leading venture capital firms. Over the past 18 months, more than eight partners and several associates have exited the firm. This trend reflects a growing interest among limited partners in backing first-time fund managers who have a proven track record and a clear sector focus.
The Indian venture capital landscape has seen similar movements, with former Peak XV MDs launching new funds like Ambition Capital and Kenro Capital, targeting early-stage investments and secondary markets, respectively. This shift suggests a diversification in the venture ecosystem, where emerging managers are capitalizing on their expertise and networks to launch new ventures.
### Implications for India’s Startup Ecosystem
Mettle Capital’s focus on sectors like enterprise AI and deeptech is significant for India’s startup ecosystem, as these areas are poised for substantial growth. The firm’s strategic sector focus could provide much-needed capital to startups in these domains, fostering innovation and potentially leading to the next wave of unicorns in the country.
Moreover, Mettle Capital’s entry underscores the increasing dynamism and maturity of the Indian venture capital landscape, where experienced professionals are creating new pathways for investment. This could lead to more competitive funding rounds and increased support for startups at critical growth stages.
As Mettle Capital sets its sights on closing its fund and beginning investments, Indian founders and investors should watch how this new entrant impacts the competitive landscape. The firm’s focus on high-conviction, sector-specific investments could set a precedent for future venture capital strategies in India.
