Peters was born in Toronto, Ontario, to Eric and Maureen Peters. When he was four, the family moved to Brampton, a city close to Toronto. His older brother Clayton now serves as Peters’ manager. Peters is Catholic and of Anglo-Indian descent. His late father was born in Bombay, India and worked as a federal meat inspector; Peters regularly features stories about him in his comedy work.
Peters attended Chinguacousy Secondary School for grades 9–10, and North Peel Secondary School in Bramalea for grades 11–12. In school, he was regularly bullied because of his ethnicity. He eventually learned boxing, which helped him resist the bullying.
Peters also became a hip hop “junkie” in his youth. By the 1990s, he was a well-connected DJ in the Toronto scene.