Peak XV’s Mohit Bhatnagar bullish on AI, deep tech; sees 50+ portfolio firms nearing IPO scale

Peak XV is doubling down on artificial intelligence and deep technology in India, with Managing Director Mohit Bhatnagar saying the firm has made more than 100 AI investments and expects consumer applications to take off as the cost of AI tokens falls.

Speaking to CNBC-TV18 on the sidelines of the Global Fintech Festival, Bhatnagar acknowledged that the current AI boom has brought some hype and inflated valuations.

He, however, clarified that this does not take away from companies building AI-native businesses, particularly in financial services.

AI could help extend insurance, wealth management and advisory services to consumers in Tier-3 and Tier-4 India and allow them to access these services in their preferred languages.

Bhatnagar said Peak XV has adopted a “five-layered cake strategy” for AI investments, covering semiconductors, foundational models, infrastructure, developer tools and applications. The firm has investments across these layers, including GPU maker Lagrana and foundational AI model company Sarvam.

“We’re going to actually let these companies take their time to get to their revenue models and their business models,” he said, adding that the priority is to build products that enterprises and consumers genuinely adopt.

Bhatnagar expects AI to increasingly move into consumer applications as token costs decline.

“Most of them are getting consumed in enterprise use cases. I think it’s just a matter of time, right around the corner, where the cost of that token is going to drop to a price point where we are going to unleash a numerous amount of consumer applications in India,” he said.

He expects applications such as AI tutors, doctors and financial advisers to become more accessible over the next three to four years.

Also read: Global Fintech Fest 2026: PhonePe, Visa roll out tap-to-pay, cross-border QR payments and card acceptance feature

 

Peak XV bullish on deep tech

Beyond AI, Bhatnagar said Peak XV is “super bullish” on deep tech, particularly semiconductors, space and precision manufacturing.

“For the first time, we are seeing just incredible world-class talent step out of large organisations and build very deep solutions that are needed for sovereign India,” he said.

He cited GPUs, satellite-launch technologies and reusable rockets as examples of areas where Indian startups are developing deep-tech capabilities. Peak XV has invested in space-tech company Digantara and is looking at further opportunities in the sector.

 

Quick commerce here to stay

Bhatnagar also defended Peak XV’s investment in quick-commerce startup First Club, saying the sector has fundamentally changed consumer behaviour in India.

“Quick commerce is here to stay. It has completely changed the way Indians buy,” he said.

While the segment currently accounts for around 7-8 million deliveries a day and remains concentrated in larger cities, he sees scope for expansion into Tier-2 and Tier-3 markets. First Club, meanwhile, is targeting the premium segment, particularly consumers seeking higher-quality fresh products.

“People underestimate the size of the Indian market. There are going to be these multiple segments, all of which will flourish,” Bhatnagar said.

 

Strong IPO pipeline

Bhatnagar also pointed to the growing acceptance of startups in India's public markets. Peak XV has had about 37 IPOs in its history, with around 22 taking place in the last five years, he said.

He expects the contribution of startups to India's market capitalisation to rise significantly from current levels.

“For all our success, it’s only about 3% of the total Indian market cap that comes from startups. I expect that number to be at least three to four times that in the next decade,” he said.

Within Peak XV's portfolio, Razorpay and Zetwerk are among the companies preparing for public markets, Bhatnagar said. The firm tracks companies that have crossed $100 million in actual revenue as an indicator of the scale needed to eventually go public.

“We think of that as a very high pipeline of more than 50 companies that have actually crossed that metric,” he said.

Overall, Bhatnagar said AI and deep tech would remain Peak XV's key investment themes, with falling AI costs expected to broaden adoption beyond enterprise use cases and into consumer applications.