OYO, Razorpay Backer Lightspeed to Launch New India-Focused Fund

Lightspeed India Partners, the venture capital firm that has backed some of India’s most successful startups including OYO and Razorpay, is preparing to launch a new India and Southeast Asia-focused fund in 2026. The move signals renewed confidence in the region’s startup ecosystem amid improving exit conditions and a growing IPO pipeline.

The upcoming fund is expected to build on Lightspeed’s long-term commitment to India, where it has been an early investor in category-defining companies across fintech, consumer internet, SaaS and enterprise technology.

Fund Size and Timeline

The new fund is likely to be Lightspeed India Partners’ fifth dedicated vehicle for India and Southeast Asia, with fundraising expected to begin in the second half of 2026. Market estimates suggest the fund size could be around $500 million, similar to its previous India-SEA fund raised in 2022.

If successful, this would further strengthen Lightspeed’s position as one of the most active and influential early-stage venture investors in the region.

Strong IPO Pipeline Driving Confidence

The timing of the new fund launch coincides with a robust IPO pipeline within Lightspeed’s existing portfolio. Several of its Indian investments — including Zepto, OYO, Udaan, Zetwerk and Acko — are widely seen as potential public market candidates over the next few years.

A healthy exit environment not only boosts investor confidence but also improves the firm’s ability to raise fresh capital, especially after a period of global venture capital slowdown.

Investment Focus Areas

While Lightspeed follows a sector-agnostic strategy, the firm is expected to continue prioritising high-growth themes such as:

• Artificial Intelligence and Deep Tech
• Fintech and Digital Payments
• Consumer Internet and Quick Commerce
• SaaS and Enterprise Technology
• Emerging Web3 and Infrastructure Plays

The fund will target early-stage and growth-stage startups, with a strong emphasis on founder-led innovation and scalable business models.

Global Context

The India-focused fund is part of Lightspeed’s broader global expansion strategy. Over the last year, the firm has raised multiple funds across regions, significantly increasing its global assets under management and reinforcing its long-term belief in technology-driven growth markets.

India and Southeast Asia remain central to this strategy due to their large addressable markets, improving digital infrastructure and increasing global investor interest.

What This Means for India’s Startup Ecosystem

Lightspeed’s planned fund launch is a positive signal for Indian startups seeking capital at a time when funding remains selective. A large, dedicated pool of capital focused on the region could help bridge funding gaps, support scale-ups, and accelerate innovation across sectors.

As India’s venture ecosystem matures and public market exits become more common, global investors like Lightspeed appear increasingly willing to double down on the opportunity.

Source: https://www.newsbytesapp.com/news/business/lightspeed-plans-new-india-southeast-asia-fund/story