Lightspeed Venture Partners is raising its fifth Indian fund with a target size significantly smaller than its predecessor, marking a strategic pivot towards early AI bets in one of the fastest-growing startup markets in the world. Reportedly, the firm is targeting $300–350 million compared to the $500 million raised for its fourth Indian fund in 2022.
The trajectory of Lightspeed's Indian funds has been one of steady growth: Fund I – $135 million, Fund II – $180 million, Fund III – $275 million, Fund IV – $500 million. The new target size of $300–350 million represents a step back from the initial goal, which reportedly aimed again for $500 million.
Approximately 60% of Lightspeed's recent Indian investments have been directed towards AI startups. Support has been given to companies like Sarvam, Emergent, and Composio, placing the firm squarely in the deeptech line, which is currently attracting the most global attention. The company also expects to realize around $500 million from its existing Indian portfolio by the end of the year.
The pivot in India does not exist in isolation. In December 2025, Lightspeed closed a global fund at $9 billion with AI as the central theme of its allocation. Across its global portfolio, the company has invested $5.5 billion in more than 165 AI startups, becoming one of the most aggressive venture backers in this space. Lightspeed is also moving towards a shorter investment period for its Indian fund, aligning deployment timelines with its global strategy.
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