Hongshan: Peak XV says will ‘collaborate’ as HongShan makes Southeast Asia entry

According to a report in the Financial Times on Sunday, HongShan would leverage its office and base in the city-state to invest in the Southeast Asian region.

Sequoia Capital in June announced a three-way split that saw the Silicon Valley-headquartered venture fund’s US, China, and India & Southeast Asia operations going separate ways. While the Chinese entity was rebranded as HongShan, Sequoia India & Southeast Asia was renamed Peak XV.

Commenting on HongShan’s SE Asia entry, Peak XV said it believes that “the opportunities for collaboration are far greater than the scope for competition” between the two firms.

“We operate in an industry where we both compete and collaborate with other venture firms. We are constantly working alongside other venture firms to support founders across every stage of their journey,” a spokesperson for Peak XV Partners told ET.

“We have a very strong and collaborative relationship with the HongShan team and deep friendships with many of the partners,” she added.

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The spin-off process for all units is expected to be concluded before the end of March next year.The China business has been among the most successful franchises for Sequoia globally with a portfolio comprising ByteDance and Alibaba.

HongShan told the Financial Times that it “anticipates there will be potential opportunities” for Peak XV and it to “collaborate in the future”.

Business publication the Information on Saturday reported that both HongShan and Peak XV were holding meetings with their global LPs to ensure that they continue to be in the good graces of their investors.

While HongShan was holding a three-day meeting with LPs in Shanghai, calling the event a ‘China field trip’, Peak XV was meeting backers in the US and had plans to open an office in the region.

In an interview with ET last month, Peak XV managing director Shailendra Singh said the Indian franchise had returned $4.5 billion (Rs 36,000 crore) to LPs. In media interviews, Singh said with no non-compete agreements signed, these firms could possibly compete against each other.

Besides reducing cross-border portfolio conflicts, the spin-off would make the investment process nimbler for the Indian and Southeast Asian counterpart, Singh had told ET.

“We expect more agility in the investment process. By eliminating centralised legal and compliance functions, we can now make decisions based on our nuanced understanding of local regulations, rather than be constrained by regulations that may have no bearing in our region. This is one example of how we will be able to make the investment process nimbler,” Singh said at the time.

According to a report in the Financial Times on Sunday, HongShan would leverage its office and base in the city-state to invest in the Southeast Asian region.

Sequoia Capital in June announced a three-way split that saw the Silicon Valley-headquartered venture fund’s US, China, and India & Southeast Asia operations going separate ways. While the Chinese entity was rebranded as HongShan, Sequoia India & Southeast Asia was renamed Peak XV.

Commenting on HongShan’s SE Asia entry, Peak XV said it believes that “the opportunities for collaboration are far greater than the scope for competition” between the two firms.

“We operate in an industry where we both compete and collaborate with other venture firms. We are constantly working alongside other venture firms to support founders across every stage of their journey,” a spokesperson for Peak XV Partners told ET.

“We have a very strong and collaborative relationship with the HongShan team and deep friendships with many of the partners,” she added.

Discover the stories of your interest

The spin-off process for all units is expected to be concluded before the end of March next year.The China business has been among the most successful franchises for Sequoia globally with a portfolio comprising ByteDance and Alibaba.

HongShan told the Financial Times that it “anticipates there will be potential opportunities” for Peak XV and it to “collaborate in the future”.

Business publication the Information on Saturday reported that both HongShan and Peak XV were holding meetings with their global LPs to ensure that they continue to be in the good graces of their investors.

While HongShan was holding a three-day meeting with LPs in Shanghai, calling the event a ‘China field trip’, Peak XV was meeting backers in the US and had plans to open an office in the region.

In an interview with ET last month, Peak XV managing director Shailendra Singh said the Indian franchise had returned $4.5 billion (Rs 36,000 crore) to LPs. In media interviews, Singh said with no non-compete agreements signed, these firms could possibly compete against each other.

Besides reducing cross-border portfolio conflicts, the spin-off would make the investment process nimbler for the Indian and Southeast Asian counterpart, Singh had told ET.

“We expect more agility in the investment process. By eliminating centralised legal and compliance functions, we can now make decisions based on our nuanced understanding of local regulations, rather than be constrained by regulations that may have no bearing in our region. This is one example of how we will be able to make the investment process nimbler,” Singh said at the time.