Tarun Davda, a Managing Director at Peak XV Partners (formerly Sequoia Capital India & Southeast Asia), is a prominent figure in the Indian startup ecosystem. With a background as a founder and an operator, he brings a unique perspective to his role as an investor. He is particularly known for his deep expertise in the Software-as-a-Service (SaaS) and consumer technology sectors, having partnered with some of the region's most successful startups, including Unacademy, CRED, Razorpay, and Whatfix.

His insights on company building, go-to-market strategies, and what it takes to scale a business are highly sought after by entrepreneurs.

On Founders and What He Looks For

  1. "One of the key things we look for in founders is a 'spike'. It could be in product thinking, it could be in sales, it could be in technology, but they have to be world-class at something."
    Learning: Founders don't need to be good at everything, but they must possess at least one superpower—a truly exceptional skill that gives their company a competitive edge.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=1u-C2iF_p4c
  2. "We love founders who have 'earned wisdom'. They have a unique insight on the market or the problem that is not obvious to others."
    Learning: The best business ideas come from a deep, non-obvious insight gained through personal experience or intense observation. This "secret" is a powerful differentiator.
    Source: Blume Ventures "X-Unicorn" Podcast (YouTube), https://www.youtube.com/watch?v=e_w2fO2P6cQ
  3. "The ability to attract and retain top talent is perhaps the single most important skill a founder can have."
    Learning: A startup is simply a collection of its people. A founder's success is directly correlated with their ability to build a world-class team that is smarter and more capable than they are.
    Source: Matrix Partners "Matrix Moments" (YouTube), https://www.youtube.com/watch?v=f9x0Z_4F5fA
  4. "We look for founders who are deeply passionate about the problem they are solving, not just the solution they are building."
    Learning: Passion for the problem ensures resilience. The solution will inevitably evolve, but a founder who is obsessed with the customer's pain point will persevere through pivots and challenges.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=1u-C2iF_p4c
  5. "Grit and resilience are table stakes. Every successful founder has a story of staring into the abyss and not giving up."
    Learning: Entrepreneurship is a test of endurance. The ability to handle immense pressure and bounce back from near-fatal setbacks is a non-negotiable trait for success.
    Source: The Economic Times, https://economictimes.indiatimes.com/tech/startups/sequoia-indias-tarun-davda-on-the-funding-winter-and-the-future-of-startups/articleshow/92067523.cms
  6. "The best founders have a very high clock speed. They are able to process information and make decisions very quickly."
    Learning: Startups operate in a world of uncertainty where speed is a competitive advantage. Leaders who can learn and iterate quickly will outpace the competition.
    Source: Matrix Partners "Matrix Moments" (YouTube), https://www.youtube.com/watch?v=f9x0Z_4F5fA
  7. "We look for founders with a growth mindset. They are constantly learning, seeking feedback, and willing to be challenged."
    Learning: Founders who believe their abilities can be developed are more likely to adapt and grow with their companies. They are coachable and not afraid to admit what they don't know.
    Source: Blume Ventures "X-Unicorn" Podcast (YouTube), https://www.youtube.com/watch?v=e_w2fO2P6cQ

On SaaS and Go-to-Market Strategy

  1. "For SaaS companies, the first 10 customers are the hardest. You have to be willing to do things that don't scale to get them."
    Learning: In the early days, brute force is necessary. Founders need to be deeply involved in every sale, demo, and onboarding process to win those crucial first customers.
    Source: Peak XV Partners Blog, https://www.peakxv.com/perspectives/building-a-global-saas-business-from-india/
  2. "The best SaaS companies are built on a product that sells itself."
    Learning: While sales and marketing are critical, the most scalable and efficient growth comes from a product that is so good that it drives strong organic adoption and word-of-mouth.
    Source: SaaStr (YouTube), https://www.youtube.com/watch?v=R2-c8v_x5fI
  3. "Don't hire a VP of Sales too early. The founder needs to be the first salesperson."
    Learning: Founders must personally sell the product initially to gain unfiltered customer feedback, understand objections, and truly grasp the value proposition. This knowledge is essential before scaling a sales team.
    Source: Matrix Partners "Matrix Moments" (YouTube), https://www.youtube.com/watch?v=Kz6oN9iM_3E
  4. "Category creation is hard but incredibly rewarding. It requires educating the market, but if you succeed, you become the market leader by default."
    Learning: Building a new category is a long-term game that requires patience and a significant investment in content and thought leadership. The prize is a dominant, defensible market position.
    Source: Peak XV Partners Blog, https://www.peakxv.com/perspectives/the-art-of-category-creation/
  5. "Net Revenue Retention (NRR) is the single most important metric for a SaaS business."
    Learning: High NRR (ideally >120%) is proof that you are delivering real value to your customers. It means your existing customers are spending more with you over time, creating a powerful, compounding growth engine.
    Source: The Economic Times, https://economictimes.indiatimes.com/tech/startups/saas-is-a-multi-decade-trend-says-sequoia-indias-tarun-davda/articleshow/81817454.cms
  6. "India is the 'SaaS garage' for the world."
    Learning: India's unique combination of a deep talent pool and cost advantages makes it one of the best places in the world to build and scale a global SaaS company.
    Source: Moneycontrol, https://www.moneycontrol.com/news/business/startup/india-is-the-saas-garage-for-the-world-sequoia-indias-tarun-davda-7423501.html
  7. "Product-led growth (PLG) is not a silver bullet. It works best for products with a short time-to-value and a large potential user base."
    Learning: PLG is a powerful GTM motion, but it's not suitable for every product. Complex, high-ACV enterprise software often still requires a sales-led approach.
    Source: SaaStr (YouTube), https://www.youtube.com/watch?v=R2-c8v_x5fI

On Company Building and Strategy

  1. "Culture is not what you write on the walls. It's the collective behavior of your team."
    Learning: Culture is shaped by the actions you take, the people you hire and fire, and the behaviors you reward. It must be intentionally built and reinforced from day one.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=1u-C2iF_p4c
  2. "Focus is a superpower. Say no to almost everything."
    Learning: In the early stages, the biggest risk is a lack of focus. Startups die from indigestion, not starvation. Concentrate your limited resources on the one or two things that truly matter.
    Source: Matrix Partners "Matrix Moments" (YouTube), https://www.youtube.com/watch?v=f9x0Z_4F5fA
  3. "The goal of the first 18-24 months is to find product-market fit. Nothing else matters."
    Learning: Don't get distracted by vanity metrics or premature scaling. Your only job in the beginning is to build something a specific group of customers desperately wants.
    Source: Blume Ventures "X-Unicorn" Podcast (YouTube), https://www.youtube.com/watch?v=e_w2fO2P6cQ
  4. "A startup is a race against time. Speed of execution is a massive competitive advantage."
    Learning: The ability to learn, build, and iterate faster than the competition is often the difference between success and failure.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=1u-C2iF_p4c
  5. "Don't build a vitamin, build a painkiller."
    Learning: Focus on solving a mission-critical, high-priority problem for your customers. "Nice-to-have" products are vulnerable during budget cuts and have much longer sales cycles.
    Source: Peak XV Partners Blog, https://www.peakxv.com/perspectives/
  6. "The best companies are distribution machines, not just product machines."
    Learning: A great product is necessary but not sufficient. You must also build a scalable and repeatable go-to-market engine to get your product into the hands of customers.
    Source: Matrix Partners "Matrix Moments" (YouTube), https://www.youtube.com/watch?v=Kz6oN9iM_3E
  7. "Think of your company as a series of S-curves. You need to be looking for the next growth driver before the current one flattens out."
    Learning: Sustainable growth requires constant innovation. Always be experimenting with new products, new markets, and new channels to fuel the next phase of growth.
    Source: Blume Ventures "X-Unicorn" Podcast (YouTube), https://www.youtube.com/watch?v=e_w2fO2P6cQ

On Fundraising and the Market

  1. "Capital is a tool, not a trophy."
    Learning: Fundraising is a means to an end, not the goal itself. The real achievement is building a great business. Don't let valuation become your primary measure of success.
    Source: The Economic Times, https://economictimes.indiatimes.com/tech/startups/sequoia-indias-tarun-davda-on-the-funding-winter-and-the-future-of-startups/articleshow/92067523.cms
  2. "The best time to raise money is when you don't need it."
    Learning: Fundraising from a position of strength gives you leverage and allows you to choose the right partner, not just the first one to offer a term sheet. Always be building relationships with investors.
    Source: Matrix Partners "Matrix Moments" (YouTube), https://www.youtube.com/watch?v=f9x0Z_4F5fA
  3. "During a downturn, the focus shifts from 'growth at all costs' to 'growth with efficiency'."
    Learning: Market cycles are inevitable. Great companies are forged in tough times by focusing on strong unit economics, capital efficiency, and a clear path to profitability.
    Source: YourStory, https://yourstory.com/2022/06/investors-tarun-davda-sequoia-capital-india-funding-winter-advice
  4. "Your pitch is a story, not a spreadsheet. Investors are looking for a compelling narrative."
    Learning: While the numbers have to make sense, the most effective pitches weave a powerful story about the problem, the founder's connection to it, and a grand vision for the future.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=1u-C2iF_p4c
  5. "An IPO is not an exit, it's a financing event. The journey is only 1% finished."
    Learning: Going public is a significant milestone, but it's the starting line of a new, more demanding race. The focus on long-term value creation must intensify.
    Source: The Economic Times, https://economictimes.indiatimes.com/tech/startups/saas-is-a-multi-decade-trend-says-sequoia-indias-tarun-davda/articleshow/81817454.cms

On Personal Growth and Mindset

  1. "The founder's journey is incredibly lonely. Building a strong support system of mentors and peers is crucial."
    Learning: No one understands the pressure of being a founder like another founder. Actively cultivate a network of people you can be vulnerable with and learn from.
    Source: Blume Ventures "X-Unicorn" Podcast (YouTube), https://www.youtube.com/watch?v=e_w2fO2P6cQ
  2. "Stay paranoid. The moment you get comfortable is the moment you become vulnerable."
    Learning: Success can breed complacency. The best leaders maintain a healthy sense of paranoia, always looking for the next threat or opportunity on the horizon.
    Source: Accel India "INSIGHTS" Podcast (YouTube), https://www.youtube.com/watch?v=1u-C2iF_p4c
  3. "As a founder, you need to be constantly graduating from your job."
    Learning: The role of a founder changes dramatically at each stage of scale. You must evolve from a doer to a manager to a leader, hiring people better than you and empowering them to succeed.
    Source: Matrix Partners "Matrix Moments" (YouTube), https://www.youtube.com/watch?v=f9x0Z_4F5fA
  4. "Read voraciously. The best founders are constantly learning from the experiences of others."
    Learning: You don't have to make every mistake yourself. Reading books, blogs, and case studies is a way to compress decades of learning into a much shorter timeframe.
    Source: Peak XV Partners Blog, https://www.peakxv.com/perspectives/

Additional Key Learnings

  1. On Hiring: "Your first 10 hires will define your company's DNA for years to come. Don't compromise."
  2. On Product: "Fall in love with the customer's problem, not your solution."
  3. On Competition: "The best way to beat the competition is to make them irrelevant by creating a new game."
  4. On Pricing: "Pricing is a reflection of the value you deliver. Don't be afraid to charge for it."
  5. On TAM: "Think about the Total Addressable Problem, not just the Total Addressable Market. Great founders can expand their market."
  6. On The Role of a VC: "My job is to be a sparring partner, a coach, and a shoulder to cry on."
  7. On Board Meetings: "A good board meeting is a strategic discussion about the future, not a review of the past."
  8. On Scaling: "Don't scale a broken process. Fix the leaks in the bucket before you pour more water in."
  9. On Data: "Be data-informed, not data-driven. Data tells you what happened, but it doesn't tell you why or what to do next."
  10. On Building a Brand: "Your brand is the sum of every interaction a customer has with your company."
  11. On Feedback: "Seek out criticism, not praise. The most valuable feedback is the kind that challenges your assumptions."
  12. On The Consumer Market: "In consumer, habit formation is the ultimate moat."
  13. On Enterprise Sales: "The key to enterprise sales is understanding the customer's procurement process and aligning your sales cycle to it."
  14. On Founder-Market Fit: "You should have an almost unfair advantage in the market you're going after because of your background or experience."
  15. On Frugality: "Constraints breed creativity. Frugality in the early days forces you to be resourceful."
  16. On Leadership: "True leadership is about making your team successful."
  17. On Failure: "Failure is only a failure if you don't learn from it."
  18. On Long-term Vision: "Build a company that can outlast you. Think in decades, not quarters."
  19. On Work-Life Balance: "It's not about balance, it's about integration. Your work should be a meaningful part of your life."
  20. On Giving Back: "The best way to thank your mentors is to pay it forward to the next generation of founders."