WestBridge Capital is reportedly facing a potential withdrawal of investment from Princeton University, one of its key limited partners, as pressure on some of its listed holdings and limited cash distributions raise concerns about portfolio performance.

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According to a Moneycontrol report published on October 23, 2026, Princeton is seeking to redeem its investment over the coming quarters, citing concerns about the performance of WestBridge’s public-market investments and a lack of distributions to paid-in capital (DPI). The report, citing people familiar with the matter, estimates Princeton’s exposure to the investment firm at at least $500 million. Neither WestBridge nor Princeton responded to the publication’s queries.

Several listed investments have faced pressure over the past year. InterGlobe Aviation, which operates IndiGo, and India Shelter Finance have recorded declines, while Freshworks continues to trade below its 2021 initial public offering price. WestBridge has also reduced its holding in Freshworks and is reportedly pursuing an exit from Star Health.

The potential withdrawal comes as WestBridge is said to be slowing fresh investments and focusing more on managing existing portfolio companies and monetising holdings. The firm is reportedly considering exits from investments including Star Health, TransUnion CIBIL and DealShare, while continuing to back businesses such as Third Wave Coffee and Rapido.

The relationship between Princeton and WestBridge stretches back nearly two decades. WestBridge co-founder Sumir Chadha graduated from Princeton in 1993, and the university supported the firm after its separation from Sequoia Capital India in 2011.

The reported development could mark a significant change for the investment firm as it balances long-term portfolio management, investor liquidity and new investment opportunities.