Lightspeed is targeting $250 million for a new early-stage India fund focused on AI, according to an investor letter seen by TechCrunch. The vehicle, Lightspeed India Partners V, has already secured commitments for 80% of its target and is half the size of the firm's previous $500 million India fund. Lightspeed plans to begin investing from the new fund within two months, with an investment period of roughly two and a half years.
The smaller size is deliberate. Lightspeed told investors it allows the firm to focus on individual deals rather than fund size, and to raise its next fund sooner. The new fund also marks the first time Lightspeed's India funds will run on the same fundraising cycle as its global funds, a move that follows a similar shift by rival Accel.
The AI focus is a notable change for Lightspeed's India strategy, which has historically spanned sectors such as quick commerce, consumer internet, and software. The firm's thesis anticipates AI creating more value in India than the internet did, even though India has yet to produce a major frontier AI model developer. Investors increasingly see opportunity in the application layer, drawing on India's large pool of software developers and its long history as a technology services hub.