Lightspeed Venture Partners Plans Fifth India-Southeast Asia Fund Worth $500 Million
Lightspeed Venture Partners is preparing its fifth India-Southeast Asia fund targeting $500 million, with fundraising expected to begin in Q3-Q4 2026. The firm has steadily grown its regional presence from $135 million in Fund I to $500 million in Fund IV raised in 2022. Portfolio companies including Oyo, Zepto, Zetwerk, Udaan and Acko are preparing for IPOs, creating potential liquidity opportunities. This initiative aligns with Lightspeed's global expansion, having raised over $9 billion across six funds in December 2025, bringing total AUM to over $40 billion.
*this image is generated using AI for illustrative purposes only.
Lightspeed Venture Partners is preparing to launch its fifth dedicated India-Southeast Asia fund, targeting approximately $500 million in capital. The Silicon Valley-headquartered venture capital firm plans to begin fundraising in the third or fourth quarter of 2026, marking a strategic expansion in one of its key investment regions.
Fund Evolution and Growth Trajectory
The proposed fund represents Lightspeed's continued commitment to the India-Southeast Asia market, following a pattern of steady growth across previous vehicles. The firm has systematically scaled its regional presence through four dedicated early-stage funds.
| Fund: | Amount Raised | Year |
|---|---|---|
| Fund I: | $135 million | - |
| Fund II: | $180 million | - |
| Fund III: | $275 million | 2020 |
| Fund IV: | $500 million | 2022 |
| Fund V (Proposed): | ~$500 million | 2026 (expected) |
The fourth fund, raised in 2022, marked the largest regional vehicle to date at $500 million. The firm is currently still deploying capital from this fund, with the new vehicle expected to take another couple of years to close.
Portfolio Company Pipeline
Lightspeed's fundraising strategy is supported by a robust portfolio of companies preparing for public market debuts. Several portfolio companies are in various stages of IPO preparation, creating potential liquidity opportunities for the firm:
- Oyo: Hospitality platform preparing for public listing
- Zepto: Quick commerce startup in IPO preparation stages
- Zetwerk: Manufacturing platform considering public debut
- Udaan: B2B e-commerce platform preparing for listing
- Acko: Insurance technology company in IPO stages
The firm also backed Physics Wallah but chose not to sell any stake during its recent IPO, reflecting broader investor trends of reducing offer-for-sale components in public offerings.
Global Expansion and Investment Focus
The regional fund launch coincides with Lightspeed's aggressive global fundraising initiative. In December 2025, the firm announced raising over $9 billion across six new global funds, bringing total assets under management to over $40 billion.
| Global Investment Focus: | Details |
|---|---|
| AI Companies Backed: | Over 165 AI-native companies |
| AI Investment Amount: | More than $5.50 billion |
| Notable AI Investments: | Anthropic, Glean, Rubrik, Databricks |
For the India-Southeast Asia region, while maintaining a sector-agnostic approach, Lightspeed is likely to increase investments in artificial intelligence, deeptech, and quick commerce sectors. The firm has already established a strong presence in e-commerce and quick commerce through investments in Zepto, Snabbit, Limeroad, and Slikk.
Market Context and Timing
The fundraising initiative comes amid a broader revival in India-focused venture capital activity. The timing reflects a shift from Lightspeed's previous pattern of returning to market every two to three years, with this fund following a longer pause due to slower deployment cycles after the 2021 startup funding boom.
Several other major venture capital firms have recently closed significant India-focused funds, including Nexus Venture Partners, A91 Partners, and Accel India, each raising over $600 million. Additional firms such as Bessemer, Fireside Ventures, Blume Ventures, and Chiratae Ventures have also completed new fund closures, indicating strong investor confidence in the Indian startup ecosystem.
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