New Delhi, May 12 -- Multi-stage venture capital firm Peak XV Partners is looking to exit a supply chain technology startup that it backed more than nine years ago in a seed round of funding, a person familiar with the matter told VCCircle.

Peak XV, earlier known as Sequoia Capital India and Southeast Asia, as well as Premji Invest, the family office of Wipro founder chairman Azim Premji, and Flipkart Binny Bansal-backed 021 Capital are planning to sell their stake in Increff, the person said, asking not to be identified.

Increff, operated by NextSCM Solutions Pvt Ltd, was launched in 2016 by former Myntra executives Rajul Jain, Nirmal Jain and Anshuman Agarwal, and former NgPay executive Romil Jain. Nirmal Jain left Increff in 2018 and Romil Jain quit in 2024 to start his own venture. Around the same time, the company elevated one of its engineers, Vishal Raj, to co-founder and CTO.

According to recent filings, Anshuman Agarwal, Romil Jain, Rahul Jain and Nirmal Jain together hold 36.3% of the company. Peak XV holds 17%, 021 Capital owns 12.6%, TVS Capital holds 7.8% and Premji Invest about 4.8%, according to Tracxn.

Increff offers software-as-a-service-based merchandising and smart warehousing solutions. Its clients include Puma, Adidas, Bata, Levi's, Pepe, Celio, Gap, Benetton, Tommy Hilfiger, Mango, CK, Louis Philippe, Van Heusen, Jack & Jones, Namshi, Aramex, Sephora, and Amazon, according to its website.

The person cited above said that the three investors are considering offloading their stake to strategic partners to facilitate an exit. However, the exit plans are in an initial stage and the investors have yet to begin discussions with potential suitors, the person said.

Queries sent to Increff, 021 Capital, Binny Bansal, Peak XV, and TVS Capital did not yield any answers. Premji Invest refused to comment on the matter.

Increff had raised Rs 13 crore ($2 million) in a seed round of funding led by Sequoia Capital, now Peak XV Partners, in 2017. Two years later, in 2019, it raised Rs 20 crore (around $3 million) from 021 Capital and Flipkart co-founder Binny Bansal in its Series A round.

In 2022, Increff secured $12 million (around Rs 89 crore) in its Series B round from investors including TVS Capital, Premji Invest, and 021 Capital. The deal is estimated to have valued the company around Rs 570 crore.

Increff's revenue nearly doubled following the Series B investment to around Rs 85.2 crore in FY23, but it has remained stagnant since then. In 2024-25, revenue slipped to around Rs 83.9 crore from Rs 89.6 crore, according to VCCEdge. Also, the company remains in losses. Its net loss jumped above Rs 48 crore in FY23 from Rs 2.8 crore but shrank thereafter to Rs 15.8 crore in FY25, per VCCEdge. In 2023, a media report stated that the company had laid off around 20% of its workforce as a cost-cutting measure.

According to another person VCCircle spoke with, Increff is looking to reduce its dependence on software services and instead increase revenues from its warehousing product solutions.

In November last year, the company planned to launch Increff Grid, a nationwide dark store fulfillment network that would guarantee delivery within 24 hours while reducing logistics costs by a fourth. Currently, clients are being onboarded for the product, the person said. This person also said that the company was clocking 30-40% growth from its product revenue segment.

Published by HT Digital Content Services with permission from VC Circle.