Ex-Peak XV trio adopts equal-partnership structure for Mettle Capital

Former Peak XV Partners managing directors Ashish Agrawal, Ishaan Mittal and Tejeshwi Sharma are setting up their new venture capital firm Mettle Capital as an equal partnership, people familiar with the matter told TOI.

The structure is unusual in Indian venture capital. Most firms distribute economics and decision-making unevenly across senior partners.

People aware of the matter said the three founders aligned on equal ownership, governance and long-term economics from the outset. The move comes months after their exits from Peak XV, where disagreements around economics and carried interest had triggered one of the firm’s biggest leadership reshuffles since its split from Sequoia Capital.

Industry executives said the structure reflects a broader shift underway in venture capital. Newer firms are placing greater emphasis on governance and transparency around economics.

“Historically, venture firms tend to struggle more over internal alignment and economics than investment performance,” said one person familiar with venture fund structures. “Equal partnerships are one way some firms try to create long-term stability.”

Another industry executive said many Indian VC firms historically operated with loosely defined carry-sharing arrangements. That occasionally created friction later as startup outcomes became larger and more valuable.

“As the ecosystem matures and liquidity events become more meaningful, newer funds are trying to institutionalise economic structures more transparently from day one,” the person said.

Agrawal and Sharma declined to comment on detailed queries.

Equal-partnership structures remain rare globally as well. Silicon Valley venture capital firm Benchmark Capital is among the best-known examples. In India, Stellaris Venture Partners, which emerged from Helion Venture Partners, broadly follows a similar philosophy.

The three investors represent some of the most successful bets from Peak XV’s younger generation of dealmakers.

Agrawal led Peak XV’s investment in Groww. Mittal backed Razorpay and worked on investments including Mamaearth. Sharma focused on enterprise software and SaaS investments such as Atlan, Whatfix and Scapia.

The Economic Times first reported on Wednesday that Mettle Capital is targeting a corpus of $350-400 million. The firm plans to invest in Series A and Series B startups, with selective seed-stage bets.