Peak XV Partners Revamps Surge Amid Executive Changes; Digital Lenders Show Resilience
Peak XV reboots Surge; Digital lenders power through slowdown
Image: The Economic Times
Peak XV Partners is restructuring its Surge program following executive departures and a strategic shift, reducing cohorts and focusing on early-stage investments. Meanwhile, digital lenders like Kreditbee and Fibe report strong profits in FY26, showcasing resilience despite economic challenges.
- 01Peak XV Partners is reducing Surge's operational cadence to one cohort per year, down from two.
- 02The seed funding pool for Surge has decreased to approximately $225 million from $300 million in 2022.
- 03Kreditbee reported a net profit of ₹478 crore ($57.5 million) in FY26, a significant increase from ₹221 crore the previous year.
- 04Fibe's revenue grew by 37% year-on-year to ₹1,288.5 crore ($155 million), with a net profit increase of 64%.
- 05Simple Energy aims to scale its production capacity from 3,000 to 15,000 electric scooters monthly by March 2024.
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Peak XV Partners is undergoing a significant overhaul of its Surge program, which was initially modeled after Y Combinator. Following the departure of key executives and a strategic reevaluation, Surge will now operate with a single annual cohort instead of two. The total seed funding pool has been revised to around $225 million, down from $300 million in 2022. This restructuring aligns with broader trends in the venture capital landscape, as firms like Accel and Lightspeed also adjust their seed programs. In a parallel development, digital lenders in India have shown strong financial performance in FY26, with Kreditbee leading with a net profit of ₹478 crore ($57.5 million), up from ₹221 crore the previous year. Other fintechs, such as Fibe and Navi, also reported significant revenue and profit growth, indicating resilience in the sector despite economic headwinds. Additionally, Simple Energy, an electric scooter manufacturer, has raised ₹250 crore ($30 million) to expand production and aims for an IPO by FY28.
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The restructuring of Surge may lead to fewer funding opportunities for startups in the region, affecting their growth prospects.
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