Growth-Stage VC Firm Physis Capital Closes Maiden Fund at ₹400 Cr
Superadmin
Growth-stage venture capital (VC) firm Physis Capital has announced the final close of its maiden fund at ₹400 Cr ($48 Mn) about four years after launch.
Physis raised capital from a mix of domestic institutional investors, corporate leaders, and prominent family offices including Star Union Dai-ichi Life Insurance, family offices of Haldiram’s, Lotus Herbals, Ajmera Realty, Narayana Nethralaya, and DS Group.
Physis Capital will continue to invest in Pre-Series A to Series B stage startups across sectors. The average cheque size per investment for the VC firm is in the range of $1–3 Mn. Besides, the firm has also reserved a portion of the corpus for follow-on investments in “highest-conviction” bets.
The firm announced the first close of the fund at over ₹200 Cr last year.
To date, the fund has deployed or committed over 60% of its total capital across 10 startups, and is actively evaluating new opportunities. Physis’ current portfolio includes the likes of HoReCa supply platform Momentum (formerly Urban Harvest), sportstech startup Hudle, regional-language OTT platform STAGE, and weight-loss healthtech Elevate Now.
“We’re focused on backing founders solving real, structural problems across India, whether it’s access to capital, healthcare affordability, or building for the next wave of consumers beyond the metros. We look for teams building with conviction and depth,” Physis Capital’s managing partner Vinay Bansal said.
The firm plans to fully deploy the remaining capital over the next 6-8 months to finalise a concentrated portfolio of 15-20 companies by December 2026, with particular interest in consumer tech, fintech, and deeptech startups.
Physis Capital was launched by Inflection Point Ventures’ founders Vinay Bansal, Ankur Mittal and Mitesh Shah in 2022. After closing its maiden fund, the VC firm intends to launch a “significantly larger Fund II” in the final quarter of 2026.
In a statement, the firm said that the fund close marks a notable achievement “given the subdued fundraising environment over the past two to three years”. Important to mention that the funding environment in the Indian startup ecosystem has been rather muted in recent times.
According to Inc42’s “Annual Indian Startup Trends Report, 2025”, Indian Startups cumulatively raised $11 Bn across 936+ deals during the past year. This represents an 8% decline from the $12 Bn raised across 993 deals in 2024.
A similar trend was witnessed in the first quarter of 2026, when startup funding fell by 26% to $2.3 Bn from $3.1 Bn raised in the year-ago quarter.
Funding volumes have become more muted compared to peak years of 2021 and 2022, as investors have become much more selective. This shift is being supported by a maturing entrepreneurial ecosystem, rather than cyclical capital flows alone.
The post Growth-Stage VC Firm Physis Capital Closes Maiden Fund at ₹400 Cr appeared first on Inc42 Media.
