Groww IPO windfall sparks payout rift, exits at Peak XV: Sources

BENGALURU: Differences over payouts and carried interest following Groww’s blockbuster public listing were a key factor behind the recent exits of partners Ashish Agrawal, Ishaan Mittal, and Tejeshwi Sharma from Peak XV Partners, according to multiple people familiar with the matter. These exits add to the leadership churn at Peak XV, India’s largest venture capital firm, following its split from global brand Sequoia Capital. Sources said the latest differences over economic outcomes emerged in the days following Groww’s IPO—one of Peak XV’s most successful investments, led by Agrawal. Carried interest, or carry, is a performance-based share of investment profits paid to a venture capital firm’s partners.

The firm’s initial investment of about Rs 230 crore grew into a stake worth roughly Rs 17,300 crore post-listing, making it one of the most lucrative outcomes in its history. People aware of internal discussions said disagreements arose over how gains from the Groww outcome should translate into individual payouts, as well as the structure of carried interest in Peak XV’s upcoming venture fund. Sources added that the discussions intensified sharply over a 3-to-4-day period. According to people briefed on the matter, senior partners at the firm, including managing partner Shailendra Singh, were unwilling to revisit payout terms beyond what was previously agreed, even in light of the scale of the Groww outcome. “The friction built very quickly over the last week,” one person familiar with the discussions said. Another person said the disagreements were framed internally as institutional rather than individual, noting that returns at a venture firm reflect contributions across sourcing, investment decisions, follow-on capital, and platform support, and cannot be attributed to any single partner. However, the differences were economic in nature. Sources also pointed to tensions around carried interest in the firm’s next venture fund. One person said requests for a higher share of carry were raised at a late stage of the fundraising process, when discussions with limited partners were nearing completion and documentation was close to being finalised. While Mittal and Sharma were not directly involved in the new venture fund, people familiar with the matter said their exits were closely linked to Agrawal’s departure.

The three worked together for nearly 15 years, and his decision to leave became the catalyst for a joint exit. Peak XV did not respond to detailed queries on the payout discussions or the circumstances surrounding the exits.

According to TOI estimates, more than 35 senior investors and operating leaders—at the vice-president level and above--exited the firm since the rebranding exercise. Recent high-profile departures include Ajey Gore, currently on a health-related sabbatical, as well as Aaditya Sood and Anni Cai, TOI learned. “There’s disappointment in seeing a blue-chip firm unravel publicly. As a founder, my immediate concern is practical--how board seats transition and how continuity is ensured,” an affected portfolio company founder told TOI.