Mumbai-based investment firm Dharana Capital has successfully closed its second growth fund, amassing a substantial corpus of $250 million. The fund is earmarked for continued investments in India's thriving technology and consumer sectors, reinforcing the firm's commitment to nurturing homegrown businesses into large, publicly-listed entities.
Long-Term Vision for Building Listed Giants
Founder and Managing Partner Vamsi Duvvuri outlined the firm's core philosophy in a statement released on Monday. He expressed strong conviction in the exponential growth of India's listed technology market capitalization over the coming decade, driven by a wave of new-age companies entering the public domain. "We believe India’s listed tech market cap will grow multi-fold over the next decade as more new-age enterprises go public," Duvvuri stated.
The firm emphasizes a long-term, hands-on partnership with its portfolio companies. Its strategy revolves around backing founders and their teams to construct durable, profitable businesses and meticulously preparing them for the transition to public markets. Dharana Capital typically aims to invest in 8-10 companies through each of its funds, with cheque sizes tailored to specific business requirements.
Sector-Agnostic Approach with a Profitability Focus
While a significant portion of Dharana's portfolio comprises technology and consumer businesses, the firm maintains a largely sector-agnostic stance. The primary investment criterion is a company's potential to achieve profitability on a standalone basis, regardless of the industry. This new $250 million fund marks a significant step up from its first fund, which raised $160 million in 2022, nearly four years ago.
The investment team is primarily based in Bengaluru, India's premier startup hub, with a secondary office operating out of Dubai. This geographic spread allows the firm to maintain a strong on-ground presence in India while facilitating international connections.
Part of a Broader Fundraising Revival in Indian VC
Dharana Capital's new fund-raising effort aligns with a wider resurgence in India's private equity and venture capital landscape observed over the past 12-18 months. A host of other prominent firms have also been active in launching new capital pools.
This list includes Kedaara, ChrysCapital, Stellaris Ventures, India Quotient, Accel, A91 Partners, Nexus Venture Partners, and Bessemer Venture Partners, among others. Furthermore, several firms like Lok Capital, Chiratae Ventures, Peak XV Partners, and Blume Ventures are reportedly in various stages of their own fundraising cycles.
Broad data underscores this positive trend. In the calendar year 2025, India-focused venture capital funds raised approximately $2.5 billion across 20 new funds. This figure surpasses the $1.6 billion secured via 16 funds in 2024 and $1.9 billion across 19 funds in 2023. Although the pace of final fund closures has increased only marginally, the sheer number of fund managers returning to the market signals strong investor confidence. This activity indicates an expectation that deal-making momentum will accelerate significantly in the next few years, fueling the next generation of Indian market leaders.
