Lightspeed Aims to Raise $250M for New Early-Stage AI Fund in India

Lightspeed Venture Partners is re-aligning its strategy in India, focusing on artificial intelligence (AI) with plans to raise $250 million for a new early-stage investment fund. This decision comes as the firm anticipates AI technology will ignite a new wave of startups in one of the world’s largest markets.

The Silicon Valley-based firm is already an influential investor in notable AI companies such as Anthropic, xAI, and Databricks. In India, Lightspeed has backed Sarvam AI, a top developer of large language models chosen by the Indian government for creating sovereign AI solutions.

The fund, named Lightspeed India Partners V, will be half the size of its predecessor fund, which raised $500 million in 2022. According to a letter sent to investors, 80% of the new fund’s target has already been committed.

In late April, Lightspeed initially revealed the new fund in a U.S. regulatory filing, which did not specify the target size. Prior reports in Indian media indicated that the firm aimed to raise between $300 million and $350 million for this venture.

Lightspeed is set to commence investments from this new fund in the next two months, with a planned investment period of approximately two and a half years. Until then, it will continue final investments from its existing fund.

While a spokesperson for Lightspeed declined to comment further, it has been noted that this new fund will also align with the same fundraising cycles as its global funds, marking a significant strategic shift after nearly two decades of region-specific operations.

This strategic move mirrors actions taken by rival firm Accel, which recently raised its own $550 million India fund in tandem with new funds for the U.S. and Europe as part of a coordinated $3.5 billion fundraising initiative.

The $250 million size of the fund is tailored to match Lightspeed’s current investment pace and accommodate its shorter investment window. The firm has communicated to investors that this reduced size will allow for a sharper focus on individual deals—potentially expediting future fundraising endeavors.

Furthermore, Lightspeed’s latest fund emphasizes AI as a central theme in its early-stage investment strategy within the Indian market. The investment thesis suggests that AI has the potential to create more value in India than the internet did, targeting AI-driven enterprises throughout India and Southeast Asia.

Despite India yet to emerge as a leading global AI developer, it has historically attracted less investment in this sector compared to the U.S. and China. However, investors see a growing opportunity in India’s application layer, leveraging its extensive pool of software developers and its longstanding status as a technology hub.

The new fund represents only a small fraction of the total capital available through Lightspeed’s broader global operations. The firm manages over $65 billion in assets worldwide and raised a historic $9 billion in December 2025, which was its largest fundraising effort to date.

Lightspeed’s dedicated funds for India and Southeast Asia have deployed approximately $900 million, supplemented by an additional $1.6 billion from the firm’s global funds to assist regional portfolio companies.

This strategic shift towards a singular focus on AI marks a significant departure for Lightspeed, which has historically invested across various sectors in India. Its portfolio encompasses a diverse array of businesses, from quick commerce to software solutions and consumer internet services.

Management for the new fund will be conducted by the same team responsible for Lightspeed’s previous four India funds, maintaining continuity in leadership.