At a time when venture capital has become more selective across global markets, Peak XV is signalling that it is prepared to lean into ambition. Mohit Bhatnagar, Managing Director at the firm, said at TechSparks 2026 that the investor is increasingly comfortable making bigger bets on Indian startups as founders pursue more audacious products and business models.
The shift reflects a broader change in the Indian startup ecosystem. For much of the past decade, many venture-backed companies in India were built around familiar categories such as consumer internet, fintech, logistics and software services. Those businesses often aimed for scale within India first, with global expansion treated as a later-stage option. Bhatnagar's comments suggest that the next generation of founders is thinking differently, and that investors are adapting to match that ambition.
Bigger Bets Ahead
Bhatnagar's remarks point to a more aggressive posture from one of the region's most influential venture firms. Peak XV, formerly Sequoia Capital India and Southeast Asia, has long been associated with early conviction investing, but the current environment appears to be pushing it toward backing companies that may require more capital, longer timelines and a higher tolerance for uncertainty.
That is significant because the venture market has become more disciplined after the funding excesses of the last cycle. Investors are demanding clearer paths to profitability, stronger unit economics and more durable competitive moats. Yet Bhatnagar's message was not one of caution alone. Instead, he framed risk as a necessary part of capturing the next wave of value creation, especially when founders are building for global markets from India.
For startups, this could mean greater support for categories that once looked too early, too technical or too capital intensive for mainstream Indian venture capital. It also suggests that firms like Peak XV may be willing to underwrite companies that are not merely incremental improvements on existing models, but attempts to create entirely new markets.
AI Changes The Equation
Artificial intelligence is central to that shift. According to Bhatnagar, AI is opening new opportunities for Indian founders to build companies with global relevance from the outset. That matters because AI lowers some of the traditional barriers that limited Indian startups to services or domestic distribution-heavy businesses.
Founders can now build software products faster, automate functions that once required large teams and reach international customers with less dependence on physical infrastructure. In practical terms, that expands the range of companies that can be started in India and scaled worldwide. It also gives venture investors a stronger case for backing technically ambitious teams that may not fit older startup templates.
The implication is that the Indian startup market is moving from a phase defined by local adaptation to one shaped by original product creation. If that transition holds, the country could produce more companies that compete directly with global peers in enterprise software, AI infrastructure, developer tools and other high-value segments.
India's Next Startup Cycle
Bhatnagar's comments also reflect a maturing ecosystem. Indian founders are no longer being judged only on their ability to replicate proven models at lower cost. They are increasingly expected to build category-defining businesses, and investors are beginning to reward that ambition with larger checks and deeper engagement.
This does not mean capital will become easy. On the contrary, the bar for execution remains high, and AI-driven startups will still face scrutiny over defensibility, monetisation and long-term differentiation. But the willingness of a major firm like Peak XV to take bigger swings suggests that the market is entering a new phase in which boldness is once again being valued, provided it is paired with technical depth and commercial discipline.
For India's startup sector, the message is clear: the opportunity set is widening, and the firms that can identify truly scalable ideas early may be best positioned to shape the next decade of venture returns. Bhatnagar's remarks at TechSparks 2026 indicate that Peak XV intends to be among them.