**Lightspeed India Partners Plans New Fund Amid IPO Opportunities**
Lightspeed India Partners, an early investor in notable companies like Oyo and Razorpay, is set to launch its next fund focused on India and Southeast Asia in 2026. This move comes as its initial public offering (IPO) exit pipeline begins to materialize, according to sources familiar with the situation. Several portfolio companies, including Oyo, Zepto, Zetwerk, Udaan, and Acko, are at various stages of preparing for public listings, potentially providing liquidity for the venture capital firm. Although Lightspeed also invested in Physics Wallah, it chose not to divest any shares during the recent IPO, reflecting a trend where investors are reducing their offer-for-sale components.
In 2022, the Silicon Valley-based firm raised $500 million for its fourth and largest fund dedicated to startups in India and Southeast Asia. The upcoming fund is expected to be in a similar financial range, with fundraising anticipated to commence in the third or fourth quarter of 2026. Lightspeed has previously raised four dedicated early-stage funds for the region, with the new fund likely to be its fifth. Over the years, the firm has progressively increased its fund sizes, starting with $135 million for Fund I, $180 million for Fund II, and $275 million for Fund III in 2020. Currently, Lightspeed is still deploying capital from its fourth fund, and the new fund may take a couple of years to finalize.
Unlike previous cycles where Lightspeed returned to the market every two to three years, the firm is taking a longer pause before launching its next fund, reflecting a slower deployment cycle following the 2021 startup funding boom. In a November interview, Lightspeed’s global lead Bejul Somaia mentioned that the firm might consider a smaller fund size of approximately $250–300 million for its next vehicle. The timing of this new fund aligns with a broader global fundraising initiative, as Lightspeed announced in December 2025 that it had raised over $9 billion across six new global funds, bringing its total assets under management to over $40 billion.
To date, Lightspeed has invested in over 165 artificial intelligence (AI)-focused companies, committing more than $5.5 billion in the sector, with notable investments in firms like Anthropic, Glean, Rubrik, and Databricks. While Lightspeed remains a sector-agnostic investor in India, it is expected to increase its focus on AI, deep tech, and quick commerce in future investments.
**FAQ**
**What is Lightspeed India Partners planning for 2026?**
Lightspeed India Partners plans to raise a new fund focused on India and Southeast Asia in 2026, coinciding with the IPO preparations of several portfolio companies.
