Lightspeed targets $250 million for a new India-focused venture fund
Friday, 25 September 2026, 09:04
India’s AI opportunity is drawing a fresh venture bet, even as the country trails global leaders in building frontier models.
Venture capital firm Lightspeed plans to raise $250 million for a new fund investing in early-stage companies in India. According to a letter to investors, it has already secured commitments equal to 80% of its target.
The fund will focus on early-stage investments and artificial intelligence
Lightspeed India Partners V will be half the size of its predecessor: in 2022, the firm raised $500 million. Lightspeed plans to begin investing the new capital within two months. The investment period will last about two and a half years. Until then, the firm will continue investing capital from its previous fund.
In its investment strategy, Lightspeed estimates that artificial intelligence could create more value in India than the internet did in its day. The country does not yet have a world-class developer of advanced AI models and attracts less investment in the field. At the same time, investors see potential in applied solutions, thanks in part to the large number of software developers and India’s decades of experience in technology services.
Investments in India and Southeast Asia
The new fund will seek promising companies in India and Southeast Asia. Its launch is also intended to align fundraising by Lightspeed’s India unit with the company’s global fund cycles.
According to the letter, Lightspeed’s regional funds have already invested about $900 million, while its global funds have put another $1.6 billion into companies in the regional portfolio. Lightspeed’s investments in India include quick-commerce startup Zepto, audio platform Pocket FM, and companies developing business software.
We recommend paying attention to:
- Accel has raised $550 million for an oversubscribed India-focused venture fund, targeting technology startups in software, fintech, e-commerce, and digital services.
- Snap alumni launched Ghost Angels, a fund led by Max Rivera to back AI-driven social and consumer startups; it has funded at least five companies and plans more investments.
- In 2025, India’s startup ecosystem raised $11 billion with a shift towards early-stage investments and practical AI applications, showing maturity and a unique market dynamic compared to the US.
