Former Peak XV MD Piyush Gupta Introduces Kenro Capital

Piyush Gupta, the former Managing Director of Peak XV Partners (previously Sequoia Capital India), has launched a new investment firm, Kenro Capital. The firm aims to specialize in secondary transactions, which involve exchanging shares between investors without injecting new capital or issuing additional shares.

Kenro Capital will primarily target late-stage deals in the financial services and consumer sectors, focusing on technology-driven companies. Gupta said the firm plans to deploy $20–30 million per investment, with the flexibility to allocate larger amounts through co-investment opportunities.

Kenro Capital’s launch comes seven months after Piyush Gupta’s exit from Peak XV Partners, where he served as Managing Director of Strategic Development since 2017. 

With over a decade of experience at Morgan Stanley and Deutsche Bank, Gupta brings significant financial expertise to his new venture. He co-founded Kenro Capital with Norbert Fernandes, a private equity professional with 17 years of experience, including Temasek, IvyCap Ventures, and TR Capital roles. Together, they aim to tap into the growing market for secondary transactions in India and Southeast Asia.

The Singapore-based firm has secured funding of an undisclosed amount and plans to focus on acquiring minority stakes in companies that have achieved significant revenue growth, are profitable or nearing profitability, and are on track for an initial public offering (IPO) within the next 2-3 years. Gupta views this approach as essential in a maturing venture capital landscape, where older funds increasingly look for viable exit opportunities.

Gupta identified a gap in the market for secondary funds, particularly in India, where the demand for liquidity is increasing as venture-backed companies reach later stages. He emphasized that as more funds mature and the IPO market opens up, there is a growing need for secondary transactions to offer exit opportunities. “When venture firms, founders, and corporate VCs need to think about exits, there’s no one to turn to, and that’s the opportunity we are focusing on,” Gupta explained.

Kenro Capital will primarily focus on growth-stage secondary transactions in sectors like financial services and consumer technology across India and Southeast Asia. With the Indian IPO market gaining momentum, Gupta believes the secondary transaction landscape is ripe for growth. Companies that raised funds at high valuations in previous years are now shifting toward profitability and may re-enter the funding scene, creating additional opportunities for Kenro to invest.

As Fernandes noted, flat or down rounds are becoming more common, creating opportunities to invest in high-quality assets at more attractive valuations. He pointed out that rounds based on two-year-old valuations are plausible, especially if a company has grown by 50-60% during that period. Fernandes emphasized the importance of seizing such opportunities when they arise, noting that they are crucial for maximizing returns in the current market environment.

Fernandes highlighted that entrepreneurs now better understand what capital markets expect for a successful IPO, which is helping drive the demand for secondary investments.