Analysis
Three former managing directors at Peak XV Partners, the firm formerly known as Sequoia Capital India, have launched Mettle Capital, a new venture fund reported to have raised $350 million to invest in Indian technology startups, Newcomer reported October 29, 2026, citing two sources with direct knowledge. Source
The launch follows what Newcomer describes as an acrimonious split with the spun-off Sequoia unit.
Who founded Mettle Capital
The founding partners are Ashish Agrawal, Ishaan Mittal and Tejeshwi Sharma, according to Inc42 and Indian Startup Times, all of whom worked across both Peak XV Partners and its predecessor, Sequoia Capital India.
“Readers should treat the $350 million figure as Newcomer's reported number rather than a confirmed final close.”
Peak XV itself only recently closed $1.3 billion across new India- and APAC-focused funds, according to Entrepreneur India, meaning Mettle's founders are leaving a well-capitalized platform rather than a struggling one.
Mettle Capital's fund and strategy
Mettle Capital will target Series A and Series B rounds, with selective seed investments, according to Inc42, which separately described the fund as still targeting "$350 million to $400 million" for its first close, a detail that differs slightly from Newcomer's framing of the fund as already raised. Readers should treat the $350 million figure as Newcomer's reported number rather than a confirmed final close.
The firm has already begun talking to limited partners in the US, Europe and Asia, Inc42 reported. Newcomer's own framing suggests the three partners have moved quickly since departing Peak XV, though neither outlet named specific portfolio companies or disclosed deals as of publication.
Why now, and the India venture backdrop
Newcomer's reporting frames the raise as evidence that limited partners "are not yet writing off India as an investment destination," even as some regional investors and founders reassess their commitment to the market, with many eyeing Silicon Valley instead as US AI startups widen their lead.
Sequoia Capital India itself had raised a fund exceeding $530 million as far back as 2015, according to an Inc42 report from that year, illustrating how long the India venture ecosystem has been attracting large, dedicated pools of capital even through cycles of firm restructuring. For more on how that capital has flowed into recent deals, see our 2026 VC fundraising tracker.
What to watch next
The open question is deal flow: Agrawal, Mittal and Sharma built their records inside Peak XV's platform, and whether founders and co-investors follow them to a new, unproven brand after what Newcomer calls an acrimonious exit will determine whether Mettle can compete for the same Series A and B rounds Peak XV is still chasing with its own freshly raised $1.3 billion.
Fund spinouts like this one are increasingly common after large VC platforms reorganize regionally, and LPs typically wait for a spinout's first one or two deals before committing fresh capital beyond an initial close, which is one reason Mettle's choice to target Series A and B first checks, rather than a pure seed strategy, matters: later-stage rounds carry more visible deal flow and faster proof points than a seed-only approach would. If Mettle's debut portfolio overlaps heavily with existing Peak XV holdings, expect scrutiny over information-sharing and non-compete boundaries between the two firms; if it does not, that will be read as confirmation the split was substantive rather than cosmetic.