Two senior partners, Shailesh Lakhani and Abheek Anand, are departing Peak XV, one of the world's largest venture capital firms, according to four sources familiar with the matter. This development comes as the Indian venture market is experiencing a cooldown after years of aggressive growth.

Lakhani, a 17-year veteran of the firm, has been instrumental in several successful investments, including beauty brand Minimalist, which was acquired by Hindustan Unilever for $350 million last month. He has also led investments in companies like Ixigo and Truecaller, both of which have gone public. At least three companies he led investments in – Zetwerk, Capillary, and Porter – are preparing for initial public offerings (IPOs) within the next 12-15 months.

Anand, who co-led Southeast Asian investments, has led investments in edtech startup Cuemath, payments firm Sunrate, travel fintech Slice, trade platform Openborder, Indonesian e-commerce company Ula, and online grocer Grofers (acquired by Zomato and rebranded to Blinkit). He joined the firm 12 years ago.

The departures of Lakhani and Anand are the latest in a series of exits at Peak XV, which split from Sequoia in mid-2023. The firm still has 10 managing directors overseeing more than 400 portfolio companies, which include over 50 unicorns.

The changes come as India's venture industry faces a cooldown after years of aggressive growth. Investors have grown more selective, emphasizing profitability over the growth-at-all-costs model that dominated during the bull years following the COVID-19 pandemic. Peak XV's decision in October to cut its fund size by more than $400 million to $2.40 billion and reduce management fees reflects this growing caution.

At the time, Peak XV said it was trimming the fund to become more "deeply aligned" with its limited partners. The firm's decision to reduce its fund size and management fees was seen as a response to the changing market conditions, where investors are becoming more risk-averse and focusing on profitability.

The departures of Lakhani and Anand are significant, given their experience and track record in the industry. However, the firm's large portfolio and experienced management team are expected to help it navigate this transition. The two partners will continue to hold some of their existing board representations, according to people familiar with the matter.

In a tweet, Lakhani wrote, "As my time at Peak XV/Sequoia India reaches 17.5 years, I've decided it's the right moment to step back from the firm. It has been an incredible journey—one that began in August 2007, when India's startup ecosystem was in its infancy, to today, where it stands as one of the most vibrant in the world."

The developments at Peak XV highlight the challenges facing the Indian venture capital industry, which is adapting to a new reality after years of rapid growth. As the industry continues to evolve, it will be interesting to see how firms like Peak XV respond to the changing market conditions and investor sentiment.