\u201cThis is not a disruption\u2014it\u2019s a sign that the ecosystem is evolving.\u201d<\/p>\n
\nThat is how Deepak Gupta, General Partner at WEH Ventures, describes the recent wave of senior exits across India\u2019s venture capital firms. What may appear as instability on the surface, he suggests, is in fact a natural outcome of a maturing market\u2014one where ambition, access to capital and shifting power structures are beginning to realign.<\/p>\n
\nIndia today hosts the world\u2019s third-largest startup ecosystem, producing unicorns, attracting global investors and funding thousands of early-stage companies. Yet, the firms deciding where capital flows remain relatively concentrated\u2014and are now undergoing a visible churn at the top.<\/p>\n
\nTo understand this moment, it helps to look back.<\/p>\n
\nFrom scarcity to scale<\/p>\n
\nIndia\u2019s venture capital journey is relatively young. In the late 1980s, the government began recognising the potential of startups and small businesses to drive innovation and employment. In 1988, the country established its first institutional venture capital firm\u2014the Technology Development and Information Company of India (TDICI)\u2014focused on supporting technology-driven enterprises.<\/p>\n
\nOver time, the ecosystem expanded. Venture firms such as Sequoia Capital India and Nexus Venture Partners backed emerging startups that would go on to become some of India\u2019s most recognised technology successes, including Zomato, Flipkart and Ola.<\/p>\n
\nAs the IT and services sectors grew and the e-commerce economy took off, venture capital activity accelerated. Since 2016, India\u2019s venture ecosystem has expanded rapidly, cementing its place as the third-largest startup hub globally.<\/p>\n
\nBut scale has brought complexity\u2014and now, change.<\/p>\n
\nThe churn moment<\/p>\n
\nOver the past two years, heightened churn has been visible across venture capital firms in India. Following a funding boom and a subsequent correction cycle, several marquee firms have seen Managing Directors, Partners and CEOs step away, reshaping leadership structures.<\/p>\n
\nAt the centre of this transition is Peak XV Partners, which has witnessed one of the most significant leadership reshuffles in the country.<\/p>\n
\nShraeyansh Thakur exited earlier this year after nearly a decade to pursue entrepreneurship. Managing Directors Piyush Gupta and Anandamoy Roychowdhary stepped down, while long-time MD Shailesh Lakhani, who spent 18 years at the firm, exited in 2024. Abheek Anand and Harshjit Sethi\u2014both decade-long veterans\u2014also moved on<\/a>, alongside three additional Managing Directors (Ashish Agrawal, Ishaan Mittal and Tejeshwi Sharma) who stepped down this year<\/a>.<\/p>\n \nRecently, Lakhani and Sethi partnered with Mayank Porwal, former vice president of Sequoia Capital, to launch the VC firm \u2018Ambition Capital\u2019, where they will back seed and Series A stage startups.<\/p>\n \nYet, as Gupta points out, this is far from an isolated case.<\/p>\n \nKalaari Capital saw Priyanka Gill exit after joining in 2024 to launch her own venture, Coluxe. Elevation Capital\u2019s Partner and COO Vivek Mathur stepped down after 14 years to focus on advisory and mentorship. Mirae Asset Venture Capital saw CEO Ashish Dave exit after seven years.<\/p>\n \nSameer Brij Verma, one of the MDs at Nexus Ventures Partners exited in 2024 to start his own investment fund. <\/p>\n \nWhat is unfolding, Gupta argues, is less about instability and more about structural reality.<\/p>\n \nAmbition meets structure<\/p>\n \n\u201cIn venture capital, professionals typically spend eight to ten years at a firm, build a track record, and then become highly marketable,\u201d Gupta explains.<\/p>\n \nThat track record opens doors\u2014to launching independent funds, taking on larger roles, or building platforms with a distinct investment philosophy.<\/p>\n \nAs firms grow larger, however, individual performance can become harder to distinguish from overall fund performance. \u201cEven if an individual performs well, the fund may not,\u201d Gupta says. \u201cThat creates misalignment.\u201d<\/p>\n \nLarge partnerships can also dilute autonomy. \u201cMany ambitious investors want to run their own funds their own way\u2014and most large firms don\u2019t allow that within their structure.\u201d<\/p>\n \nThis, he adds, is not unique to India. In markets like the US, firms such as Sequoia and General Catalyst have regularly seen partner exits. It simply appears more pronounced in India today because the ecosystem itself is maturing.<\/p>\n \nA generational shift\u2014or evolution?<\/p>\n \nWhile Gupta sees the churn as part of a broader structural pattern, Rajat Tandon, President of IVCA, frames it as both visible and inevitable.<\/p>\n