India and Southeast Asia-focused VC fund, Peak XV Partners, has unveiled its ninth cohort, Surge 09, with a strong focus on AI and deep tech Startups. The latest batch, comprising 13 startups, reflects the growing international interest in these sectors and aims to address the perceived lack of depth in India’s AI startup landscape.

Ten of the 13 startups in the Surge 09 cohort specialise in AI and deeptech, emphasising the fund’s commitment to emerging technologies. This comes as the global startup landscape increasingly gravitates toward AI, with more than half of Y Combinator’s most recent batch concentrating on AI with 35% AI startups.

Shailendra Singh, Managing Director of Peak XV, expressed optimism, stating, “Would I like to see more AI startups? The answer is yes. But do we see zero? No. We see some pretty interesting things that we have picked and invested in.” He also highlighted the evolving landscape in India, emphasising the country’s potential to foster greater expertise and innovation.

The 13 startups are Dozer, Elivaas, Ethereal Machines, Horizon Quantum Computing, InCore, Mercu, Mindgrove, Neurowyzr, Newtrace, Pix.ai, Relevance AI, ZeroK, and another stealth startup. 

The Surge 09 cohort features startups addressing various issues, from early brain decline detection to quantum computing and sustainable hydrogen production. These startups are characterised by founders with PhDs and international experience, demonstrating the shift towards fundamental innovation in India.

Peak XV’s Surge program, set to complete five years in early 2024, has become a major player in early-stage investment in India and Southeast Asia. It has supported over 140 startups that have collectively raised more than $2 billion in follow-on funding.

Surge offers a unique model with a measured portfolio size for each batch, allowing founders to benefit from extensive guidance on product strategy and mission. Startups under Surge’s wing receive up to $3 million in seed funding and access to a broad array of resources.

The growing competition among venture firms in India to establish their own Surge-like programs is seen as a positive development for the ecosystem.

In addition to India and Southeast Asia, Peak XV is actively evaluating Australian startups, signalling a broader international expansion. Shailendra Singh highlighted the venture firm’s expertise in helping companies go global and indicated that Australian software startups are increasingly interested in building global firms.

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