Lightspeed targets $300–$350M for new early-stage AI fund in India

Lightspeed Venture Partners is raising a fifth India-focused fund with a target significantly smaller than its predecessor, marking a strategic pivot toward early-stage AI bets in one of the world’s fastest-growing startup markets. The firm is reportedly aiming for $300 to $350 million, down from the $500 million it raised for its fourth India fund in 2022.

The numbers tell the story

Lightspeed’s India fund trajectory has been a steady climb, until now. Fund I came in at $135 million, Fund II at $180 million, Fund III at $275 million, and Fund IV hit the $500 million mark. The new target of $300 to $350 million represents a meaningful step back from an initial goal that reportedly reached as high as $500 million again.

Roughly 60% of Lightspeed’s recent India investments have been directed toward AI startups. Companies like Sarvam, Emergent, and Composio have received backing, positioning the firm squarely in the deeptech lane that’s attracting the most global attention right now.

The firm also anticipates generating around $500 million in realizations from its existing India portfolio by year-end.

AI as the global thesis

Lightspeed’s India pivot doesn’t exist in isolation. The firm closed a $9 billion global fund in December 2025 with AI as a central allocation theme. Across its worldwide portfolio, Lightspeed has deployed $5.5 billion into more than 165 AI-native startups, making it one of the most aggressive venture backers in the space.

Lightspeed is also shifting to a shorter investment period for the India fund, aligning deployment timelines with its global strategy.

A broader industry recalibration

Lightspeed isn’t the only major firm rethinking its India approach. Peak XV Partners (the entity formerly known as Sequoia India) and Elevation Capital have both announced or adjusted fund strategies in recent months, with AI applications figuring prominently in their revised mandates.