Lightspeed targets $250M for new India fund, focusing on early-stage AI investments

New Fund for Indian AI Startups

Lightspeed is establishing a new fund, Lightspeed India Partners V, with a target of $250 million. This fund will primarily invest in early-stage artificial intelligence companies within India. The firm has already secured commitments for 80% of the target amount.

Strategic Shift and Fund Size

The new fund is half the size of Lightspeed's previous $500 million India fund, raised in 2022. This reduction in size is intended to align with Lightspeed's current investment pace and allow for a shorter investment period of approximately two and a half years. The firm plans to begin investing from this new fund within two months.

Focus on AI and Market Outlook

Lightspeed's investment thesis for this fund emphasizes AI's potential to generate significant value in India, surpassing the impact of the internet. The firm is already an investor in major AI companies globally, including Anthropic and xAI, and in India, it backs Sarvam AI, an Indian large language model developer.

This move signifies a sharper focus on AI within Lightspeed's early-stage investment strategy for the region.

Alignment with Global Strategy

For the first time, Lightspeed is aligning its India funds with the fundraising cycle of its global funds. This change integrates its nearly two-decade-old regional business more closely with the firm's overall operations. This follows a similar strategy adopted by rival firm Accel, which recently raised its India fund alongside its U.S. and Europe funds.