Key Takeaways
- • Princeton University, a key limited partner in WestBridge Capital, is seeking to redeem its investment over the next few quarters, according to at least six people familiar with the matter cited by Moneycontrol; the exposure is estimated at at least $500 million and could fall to near zero in phases.
- • Princeton's concerns reportedly center on weak performance of WestBridge's public-market holdings and low DPI (distributions to paid-in capital), a key metric for LP liquidity.
- • WestBridge is reportedly seeking to monetise stakes in Star Health, TransUnion CIBIL, DealShare and others to offset the potential Princeton outflow, and has initiated a process to fully exit Star Health with JP Morgan as preferred adviser.
- • Star Health, held at roughly 40% through Safecrop Investments India LLP, trades near Rs 545, about 40% below its Rs 900 IPO price; a full exit could fetch more than Rs 12,000 crore ($1.3 billion) at current prices, though final deal terms have not emerged.
- • WestBridge has slowed fresh investments, with sources describing the firm as moving into a fund-management and portfolio-management mode; WestBridge and Princeton did not respond to Moneycontrol's queries.
Summary
WestBridge Capital's relationship with one of its key limited partners, Princeton University, has come under strain, with the university seeking to redeem its investment in the India-focused firm over the next few quarters, according to at least six people familiar with the matter who spoke to Moneycontrol. One source estimated Princeton's exposure at at least $500 million, which could reduce to near zero in phases over the coming months. Princeton's concerns reportedly stem from weak performance of WestBridge's public-market investments and a lack of distributions to paid-in capital (DPI). Neither WestBridge nor Princeton responded to Moneycontrol's queries.
Several of WestBridge's listed positions have come under pressure over the past year. InterGlobe Aviation, which operates IndiGo, was down around 20% over the period, and WestBridge held over 1.6% as of September 2026. India Shelter Finance, in which WestBridge and affiliate Aravali Investment Holdings held about 46% as of June, fell more than 30%. Freshworks trades near $15 a share, over 55% below its $36 IPO price in 2021, and WestBridge has trimmed its stake from more than 10% in early 2023 to about 3% as of June 2026. Star Health is the most prominent case: WestBridge holds about 40% through Safecrop Investments India LLP, and the company's shares trade near Rs 545 against a Rs 900 IPO price. WestBridge has initiated a full exit, with JP Morgan as preferred adviser. Moneycontrol had earlier reported preliminary discussions with potential strategic investors, including Japanese insurers; the final deal contours have yet to emerge.
To offset a possible reduction in Princeton's commitment, WestBridge is understood to be looking to monetise investments including Star Health, TransUnion CIBIL and DealShare, among others. The firm has also been reducing stakes in listed companies it helped take public: its PhysicsWallah holding fell to just over 5.3% as of September 2026 from just over 7% around the 2025 listing, and it fully exited Aptus Value Housing Finance through block deals in 2025. One source said WestBridge is doubling down on existing companies such as Third Wave Coffee and Rapido while operating in a more fund-management mode, with the pace of fresh investments slowing in recent months.
Princeton, which invests through the Princeton University Investment Company (Princo), reported an endowment of $42.3 billion as of June 30, 2026. The relationship has a personal dimension: WestBridge co-founder and managing director Sumir Chadha graduated from Princeton in 1993 and served briefly as a trustee. WestBridge was founded in 2000 by Chadha, K.P. Balaraj and Raj Dugar, merged into Sequoia Capital India in 2006, and was revived as an independent firm in 2011 when Chadha, Balaraj, Sandeep Singhal and S.K. Jain left Sequoia. One source said Princeton backed Chadha during the split and became an LP as a result.
WestBridge's fund size totalled $7.3 billion as of December 2025, and its latest fund, raised in mid-2022, has a $1.5 billion corpus. The firm invests between $10 million and $500 million with a five- to 25-year horizon and an evergreen structure. Executives have said the fund has a notional 20-year life, with LPs able to seek liquidity after a five-year lock-in. Industry executives said any withdrawal could be structured through annual redemption windows, multi-window drawdowns, three to six months' advance notice, or a secondary sale subject to transfer restrictions. WestBridge has not publicly said whether its portfolio changes are linked to Princeton.
Several of WestBridge's listed positions have come under pressure over the past year. InterGlobe Aviation, which operates IndiGo, was down around 20% over the period, and WestBridge held over 1.6% as of September 2026. India Shelter Finance, in which WestBridge and affiliate Aravali Investment Holdings held about 46% as of June, fell more than 30%. Freshworks trades near $15 a share, over 55% below its $36 IPO price in 2021, and WestBridge has trimmed its stake from more than 10% in early 2023 to about 3% as of June 2026. Star Health is the most prominent case: WestBridge holds about 40% through Safecrop Investments India LLP, and the company's shares trade near Rs 545 against a Rs 900 IPO price. WestBridge has initiated a full exit, with JP Morgan as preferred adviser. Moneycontrol had earlier reported preliminary discussions with potential strategic investors, including Japanese insurers; the final deal contours have yet to emerge.
To offset a possible reduction in Princeton's commitment, WestBridge is understood to be looking to monetise investments including Star Health, TransUnion CIBIL and DealShare, among others. The firm has also been reducing stakes in listed companies it helped take public: its PhysicsWallah holding fell to just over 5.3% as of September 2026 from just over 7% around the 2025 listing, and it fully exited Aptus Value Housing Finance through block deals in 2025. One source said WestBridge is doubling down on existing companies such as Third Wave Coffee and Rapido while operating in a more fund-management mode, with the pace of fresh investments slowing in recent months.
Princeton, which invests through the Princeton University Investment Company (Princo), reported an endowment of $42.3 billion as of June 30, 2026. The relationship has a personal dimension: WestBridge co-founder and managing director Sumir Chadha graduated from Princeton in 1993 and served briefly as a trustee. WestBridge was founded in 2000 by Chadha, K.P. Balaraj and Raj Dugar, merged into Sequoia Capital India in 2006, and was revived as an independent firm in 2011 when Chadha, Balaraj, Sandeep Singhal and S.K. Jain left Sequoia. One source said Princeton backed Chadha during the split and became an LP as a result.
WestBridge's fund size totalled $7.3 billion as of December 2025, and its latest fund, raised in mid-2022, has a $1.5 billion corpus. The firm invests between $10 million and $500 million with a five- to 25-year horizon and an evergreen structure. Executives have said the fund has a notional 20-year life, with LPs able to seek liquidity after a five-year lock-in. Industry executives said any withdrawal could be structured through annual redemption windows, multi-window drawdowns, three to six months' advance notice, or a secondary sale subject to transfer restrictions. WestBridge has not publicly said whether its portfolio changes are linked to Princeton.
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