Key Takeaways
- • Three former Peak XV Partners managing directors—Ashish Agrawal, Ishaan Mittal, and Tejeshwi Sharma—are launching Mettle Capital with a $350–400 million fundraising target to invest in Indian startups at Series A and B stages with selective seed bets.
- • Mettle Capital plans to deploy capital by September–October 2026 after closing fundraising within the next quarter, targeting 5–6 investments annually across enterprise AI, deeptech, and consumer internet sectors.
- • The February 2026 departures from Peak XV follow a pattern of senior-level churn at the firm, including exits by Shailesh Lakhani, Abheek Anand, and Harshjit Sethi, who subsequently launched Ambition Capital targeting $250 million for early-stage investments.
- • Peak XV managing director Shailendra Singh attributed the trio's departure to disagreements over economics and executive compensation, though he stated the firm was "completely comfortable" with their decision to leave.
Summary
Three former managing directors at Peak XV Partners have launched Mettle Capital, a new venture capital fund targeting $350–400 million to invest in Indian startups. The founders—Ashish Agrawal, Ishaan Mittal, and Tejeshwi Sharma—announced their departures from Peak XV in February 2026 in what was characterized as a high-profile exit from one of India's most prominent venture capital firms.
Mettle Capital will focus on backing startups primarily at Series A and B stages, supplemented by selective seed-stage investments. The fund plans to deploy capital by September–October 2026, with an investment cadence of 5–6 deals annually. According to sources familiar with the matter, the fund's strategy centers on three core sectors: enterprise artificial intelligence, deeptech, and consumer internet. The firm aims to close its fundraising round within the next quarter from the announcement date.
The trio's departure from Peak XV reflected broader instability at the firm's partner level. Peak XV managing director Shailendra Singh disclosed that the exits stemmed from disagreements over economics and executive compensation structures. However, Singh emphasized that Peak XV was "completely comfortable" with the partners' decision to pursue independent opportunities. This exit follows a wave of senior departures at the fund over the preceding year, including managing directors Shailesh Lakhani, Abheek Anand, and Harshjit Sethi. Lakhani and Sethi subsequently co-founded Ambition Capital, which secured a $250 million fundraising target for early-stage seed and Series A investments.
The launches of Mettle Capital and Ambition Capital underscore the competitive dynamics and structural challenges within India's venture capital ecosystem, with experienced GP teams increasingly striking out to establish independent platforms. The exits highlight potential tensions around compensation alignment and decision-making authority at larger, established venture platforms as the Indian startup ecosystem continues to mature and fragment across multiple investment theses.
Mettle Capital will focus on backing startups primarily at Series A and B stages, supplemented by selective seed-stage investments. The fund plans to deploy capital by September–October 2026, with an investment cadence of 5–6 deals annually. According to sources familiar with the matter, the fund's strategy centers on three core sectors: enterprise artificial intelligence, deeptech, and consumer internet. The firm aims to close its fundraising round within the next quarter from the announcement date.
The trio's departure from Peak XV reflected broader instability at the firm's partner level. Peak XV managing director Shailendra Singh disclosed that the exits stemmed from disagreements over economics and executive compensation structures. However, Singh emphasized that Peak XV was "completely comfortable" with the partners' decision to pursue independent opportunities. This exit follows a wave of senior departures at the fund over the preceding year, including managing directors Shailesh Lakhani, Abheek Anand, and Harshjit Sethi. Lakhani and Sethi subsequently co-founded Ambition Capital, which secured a $250 million fundraising target for early-stage seed and Series A investments.
The launches of Mettle Capital and Ambition Capital underscore the competitive dynamics and structural challenges within India's venture capital ecosystem, with experienced GP teams increasingly striking out to establish independent platforms. The exits highlight potential tensions around compensation alignment and decision-making authority at larger, established venture platforms as the Indian startup ecosystem continues to mature and fragment across multiple investment theses.
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