Lightspeed is raising a $250 Mn early-stage fund for AI startups in India and Southeast Asia, called Lightspeed India Partners V.
The new fund is half the size of Lightspeed’s previous India fund, which raised $500 Mn in 2022, according to an investor letter seen by TechCrunch.
The letter went to investors on Thursday, September 24, 2026. It said the fund has already secured 80% of its $250 Mn target. That is about $200 Mn committed.
Lightspeed India Partners V will back only early-stage AI companies. This is a sharp change for a firm that has funded quick commerce, consumer internet and household services in India.
Rival Accel made a similar move earlier with a $550 Mn India fund. The bets are getting narrower and faster.
Lightspeed plans to start investing within two months. It will deploy the money over about two and a half years, a shorter period than a normal venture fund.
The firm first disclosed the fund in a US regulatory filing in late April 2026. That filing did not name a target size. Indian media had earlier reported a range of $300 Mn to $350 Mn.
In its letter, Lightspeed said the smaller size matches the pace at which it now invests. The shorter period lets it focus on single deals and raise the next fund sooner.
Lightspeed backs AI companies worldwide, including Anthropic, xAI and Databricks. In India it has funded Sarvam AI, a large language model developer picked by the government to help build sovereign AI models.
Starting with this fund, Lightspeed’s India funds will run on the same fundraising cycle as its global funds. That is a first for the firm.
A Lightspeed spokesperson declined to comment to TechCrunch.
The firm believes AI can create more value in India than the internet did. The $50 Mn gap left to close will show if other investors agree.
What this means for you: If you are an early-stage AI founder in India, a fresh $250 Mn pool opens for deals within two months, and the money is meant to move fast.
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