Lightspeed lowers India AI fund target to $300-$350M

Lightspeed has set a $300-$350 million target for its new early-stage AI fund in India, down from an earlier reported goal of $500 million.

The change comes as India’s startup funding environment shows mixed signals. Earlier this month, weekly funding dropped by 52%, with late-stage deals driving the decline, while early-stage rounds remained stable. Whether this trend will continue is unclear. Lightspeed’s decision to reduce its fund size may reflect broader shifts in how investors are approaching the market.

The firm’s India strategy has historically followed a different timeline than its global funds, but it is now aligning its local fundraising with its global cycle. This adjustment, first noted in our 25 September coverage, was intended to streamline operations. The lower target could indicate a change in priorities or a response to feedback from investors.

Meanwhile, a new ₹250 crore fund, TILT, launched by Indian founders including Deep Kalra and Vidit Aatrey, is focusing on early-stage startups serving low-income communities. This fund represents a different approach to investing in India’s startup scene.

The final size of Lightspeed’s fund will be worth watching. A smaller raise might suggest a cautious outlook for early-stage AI funding in India, while a figure closer to $350 million could indicate a more measured adjustment. Either way, the outcome may provide insight into how investors view India’s AI sector at this stage.

Sources: cryptobriefing.com