India’s venture capital ecosystem is continuing to evolve as experienced investors increasingly launch independent funds focused on the country’s growing startup opportunity. In the latest development, three former senior executives from Peak XV Partners — Ashish Agrawal, Ishaan Mittal, and Tejeshwi Sharma have reportedly come together to launch a new venture capital firm called Mettle Capital.
According to media reports, the newly formed firm is aiming to raise between $350 million and $400 million to invest in Indian startups across high-growth sectors.
A New Venture Firm Backed by Experienced Investors
The launch of Mettle Capital comes shortly after the trio exited their senior investment roles at Peak XV Partners last month.
In a post shared on X, Tejeshwi Sharma confirmed that the three former partners were joining forces to establish a new investment platform focused on the Indian startup ecosystem.
Collectively, the founders bring more than a decade of investing experience each, having worked across both Peak XV Partners and its predecessor, Sequoia Capital India.
During their tenure, they backed startups across sectors such as:
- Consumer internet
- Fintech
- Enterprise software
- Technology-led businesses
Their combined track record and network position Mettle Capital as a potentially influential new entrant in India’s venture capital landscape.
Focus on Series A and Series B Investments
As per reports, Mettle Capital plans to primarily focus on Series A and Series B investments, while also selectively participating in seed-stage opportunities.
The strategy indicates a focus on startups that have already demonstrated:
- Early product-market fit
- Revenue traction
- Scalable business models
- Growth potential
This stage of investing has become increasingly important in India as startups seek institutional capital to scale operations and strengthen market positioning.
Fundraising Plans and Deployment Timeline
Mettle Capital is reportedly targeting a first close within the next quarter and aims to begin deploying capital by September–October 2026.
The firm plans to maintain a relatively concentrated investment strategy, with reports suggesting it may complete around 5–6 investments annually.
This selective approach aligns with the broader trend among modern venture funds that prioritize:
- Deep founder engagement
- Long-term value creation
- Focused portfolio management
- Sector expertise
A Growing Trend of Independent VC Spinouts
The launch of Mettle Capital reflects a broader pattern within India’s startup investment ecosystem, where experienced investors from established venture firms are increasingly creating independent funds.
These spinouts are often driven by:
- Evolving investment theses
- Desire for more focused strategies
- Increased maturity of the Indian startup market
- Growing LP interest in India-focused venture funds
India’s venture capital ecosystem has expanded significantly over the past decade, creating opportunities for specialized funds targeting sectors such as AI, fintech, SaaS, climate tech, and consumer technology.
India’s Startup Ecosystem Continues to Attract Capital
The timing of Mettle Capital’s launch also reflects sustained confidence in India’s long-term startup growth story.
Despite global funding slowdowns in recent years, India continues to see strong entrepreneurial activity across:
- Digital infrastructure
- Financial technology
- Enterprise SaaS
- AI-led platforms
- Consumer brands
- Deeptech innovation
As the ecosystem matures, founders are increasingly seeking investors who can provide not only capital, but also strategic guidance and operational expertise.
Why the Founders’ Background Matters
Having spent years investing at one of India’s most influential venture firms, the Mettle Capital founders bring:
- Extensive founder networks
- Sector knowledge
- Investment experience across market cycles
- Access to global venture ecosystems
Their experience at Peak XV and Sequoia Capital India likely gives them strong visibility into evolving startup trends and emerging sectors.
The Bigger Picture
India’s venture capital industry is entering a new phase where experienced operators and investors are building more specialized, thesis-driven funds.
Rather than pursuing broad portfolio expansion, many newer firms are focusing on:
- Selective investing
- High-conviction bets
- Founder-first support
- Sector-specific expertise
Mettle Capital’s proposed strategy appears aligned with this evolving model.
Looking Ahead
As Mettle Capital moves toward closing its first fund and beginning investments later this year, the industry will closely watch how the new firm positions itself in an increasingly competitive venture ecosystem.
With experienced leadership, a sizable target corpus, and a focus on growth-stage startups, the firm could emerge as a significant player in India’s next wave of startup investing.
Its launch also signals the continued evolution and deepening maturity of India’s venture capital landscape—where institutional experience, founder partnerships, and focused investing strategies are becoming key differentiators.
