For Peak XV Partners, the coming months may mark one of its most rewarding phases. The venture capital firm, spun out of Sequoia Capital two year ago, is staring at a string of high-value public market debuts from some of its most prized investments – Groww, Pine Labs and Wakefit – with e-commerce unicorn Meesho also lining up its listing. For a firm that has been navigating leadership churn and recalibrating its strategy, the timing of these gains could not be more crucial.
The biggest payday could come from Groww, the discount brokerage that has been a favourite of retail investors. Having filed its updated draft red herring prospectus on Tuesday, Groww is targeting a Rs 6,000-7,000 crore IPO. Peak XV, its largest shareholder with nearly a fifth of the company, plans to offload up to 158.3 million shares, trimming its stake by 2.6%. The firm’s entry price at just Rs 1.91 per share, means its exit value is nearly twice that of Y Combinator and a staggering 11.5 times higher than Tiger Global, another early backer.
Peak XV holds more than 20% in the company
Similar is the case at Pine Labs, the digital payments and merchant commerce platform which is eyeing a $1 billion float. Peak XV holds over 20% in the company and is expected to sell as many as 39 million shares in the IPO, which could cut its stake by about 3.6%. Here too, the math is heavily in its favour: its cost of acquisition translates into an exit value per share nearly 43.5 times that of Invesco, giving it a clear edge over other marquee investors.
The third blockbuster in its basket is Wakefit, the direct-to-consumer mattress maker that plans to raise Rs 468 crore in fresh capital through its upcoming listing. Peak XV, again the largest institutional shareholder with 22.7%, is looking to pare up to 7.7% of its holding. With an entry price of Rs 20.52 a share, its exit returns will be four times higher than Verlinvest, the Belgian investment firm that comes in second on Wakefit’s cap table.
Peak XV has a 13.6% stake in Meesho
Outside of these imminent floats, Peak XV has already seen some portfolio gains crystallise. Jewellery retailer Bluestone went public in August in a Rs 1,540-crore IPO, and while the firm chose not to sell its nearly 3% stake, the value of that holding has swelled to over Rs 2,400 crore as the stock climbed 10% since listing. Meanwhile, in Meesho, Peak XV’s 13.6% stake makes it the second-largest shareholder. The social commerce company has filed confidential papers to raise Rs 4,250 crore, which could add yet another windfall to the venture firm’s coffers.
The flush of IPOs comes at a delicate juncture for Peak XV. The firm has seen three managing directors depart this year, including Harshjit Sethi earlier this month, following the exits of Shailesh Lakhani and Abheek Anand. Since its re-brand in 2023, Peak XV has also trimmed its $2.85 billion fund by 16% and revised its compensation structure to a 2/20 model for its growth and multi-stage funds from the previous 2.5/30, with the possibility of carry rising to 30%. This means fund managers will now get a 2% annual management fee and a 20-30% performance fee or carry.