Friday, May 15, 2026: Ashish Agrawal, Ishaan Mittal and Tejeshwi Sharma are setting up Mettle Capital, a new VC fund expected to raise between $350 million and $400 million, according to people aware of the development.
The fund will primarily target Indian startups in their growth journey, especially at the Series A and Series B stages, while also evaluating select early-stage opportunities.
The move comes at a time when India’s venture capital landscape is witnessing a significant reshuffling of senior investment talent. The trio’s departure from Peak XV earlier this year had drawn attention across the startup community, as all three were long-serving investors associated with the firm since its Sequoia Capital India era.
Mettle Capital Builds New India-Focused VC Platform
According to reports the plan is making headway with Mettle Capital beginning discussions with global limited partners in the United States, while also seeking commitments from investors in Europe and Asia. Domestic capital is also expected to form part of the fundraising strategy.
The new fund aims to begin deploying capital later this year, with plans to back around five to six startups annually. Its investment thesis is expected to revolve around sectors benefiting from rapid digital adoption, particularly enterprise AI, deeptech innovation and consumer-focused internet businesses.
The launch reflects a broader trend unfolding in India’s venture ecosystem, where experienced investors are increasingly breaking away from established firms to build independent franchises. Over the past year, several senior Peak XV executives have exited the firm, including Shailesh Lakhani, Abheek Anand and Harshjit Sethi. Lakhani and Sethi have since launched Ambition Capital, another India-focused investment vehicle targeting early-stage startups.
The founding team behind Mettle Capital carries a strong track record of identifying breakout companies. Agrawal is best known for backing online brokerage platform Groww in 2019, a bet that later became one of Peak XV’s most profitable investments following the company’s public listing and subsequent secondary share sales.
Mittal, meanwhile, played a role in investments such as Razorpay and beauty and personal care company Mamaearth, while Sharma led deals across enterprise software and fintech startups including Atlan, Scapia, Cred and Whatfix.
Industry observers say India’s expanding IPO market is encouraging a new generation of fund managers to strike out independently. Successful exits and public listings are allowing investors to demonstrate liquidity outcomes more clearly to global backers, making it easier for emerging firms to attract institutional capital.
However, market participants also note that fundraising conditions remain competitive, with first-time fund managers expected to present sharper sector expertise and differentiated investment strategies to stand apart in an increasingly crowded venture ecosystem.
