We’ve all seen news of startups raising millions from VCs, angel investors, and private-equity firms. Funding rounds make headlines every week. But what we rarely see or never see are the returns these investors make. Beyond the flashy valuations and term sheets lies the real story which investors actually walk away with massive profits? In recent times, one firm has been making continuous headlines for exactly this reason. Not because they invested in every other startup, but because they backed the right ones, and when those companies went public, the returns were nothing short of extraordinary. That firm is Peak XV Partners. Venture capital is a high-risk, high-potential game. Investors place many small bets across different companies, hoping that at least one turns into a breakout success. The probabilities are low, the uncertainty is high, and most bets never become home runs. Yet, in this difficult landscape, Peak XV managed to mint crores, delivering returns that deserve a closer look. So in this article, let’s do a deep dive into how Peak XV made some of the most extraordinary returns in recent years, particularly through its early-stage investments in Groww and Pine Labs. We’ll explore how much they invested, how much they made, and why these outcomes reveal the true nature of long-term venture investing.
Peak XV Partners invested a total of ₹233 crore (about $26 million) in Groww over multiple rounds starting in 2019. What makes this story remarkable is how dramatically that early conviction has paid off. As of the close of trading on 14 November, Peak XV’s remaining stake in Groww is now valued at an astonishing ₹15,720 crore, roughly $1.8 billion at that day’s closing price. And remember, this is only the unrealized part of the gains. Peak XV has already booked significant profits by selling a portion of its stake during the IPO’s Offer for Sale (OFS). The firm has sold shares worth ₹1,583 crore (approximately $180 million), locking in substantial returns while still holding the major holdings.
Now what do we need to understand and learn from these as startup enthusiasts? What are the common things amongst these startups? They both are operating in different segments but in the fintech space. Payments in India were under-penetrated, and the digital platforms such as UPI, QR, and merchants needed platforms were also low. Now pine labs have filled and fitted well into the gap. Both the companies have solved a major problem for the people of India. One solved the payments problems and the other the wealth problem. Groww made investing simple for first-time retail investors at a time when participation in capital markets was exploding. Pine Labs helped millions of merchants accept digital payments long before UPI made it mainstream. Financial products have something unique; users tend to stay for years, sometimes decades. A Groww investor who starts SIPs typically stays invested long-term. A merchant using Pine Labs’ PoS terminals rarely switches providers. Now what happens? The customer base of these companies remains with them for a longer period. That results in high revenue per user, strong unit economics, and predictable future cash flows, along with sustainable growth.
While both Groww and Pine Labs have delivered handsome returns for Peak XV, the nature of those returns tells a deeper story about venture capital itself. Groww delivered over 70× returns in just six years. Pine Labs delivered around 45× returns, but over a span of nearly sixteen years. Both are exceptional outcomes, but they highlight two important truths: Some startups compound rapidly due to timing and market momentum (Groww). Whereas others compound slowly but steadily, delivering enormous value over long durations (Pine Labs). Now what we as aspiring investors or entrepreneurs should understand is investors should back the companies and support more companies, not just based on the hype in the market. But by looking at the reasonable scale and problem they are solving. And whenever you are starting a company, remember your goal is not to raise money; you try to solve and build a company with better scale and lesser burn and, most importantly, solve problems and build a product that has a market fit. In this way it helps both investors and entrepreneurs to build wealth and create value for all.
Also Read: Andhra Pradesh secures INR 13.25 lakh crore in MoUs across 12 sectors at CII Partnership Summit 2025
