Physis Capital closes Rs 400 crore maiden fund, plans bigger second fund in 2026
Physis Capital has completed the final close of its first fund at Rs 400 crore (approximately $41.8 million), marking a significant milestone amid a cautious funding climate for Indian startups. The growth-stage venture capital firm said the vehicle will back high-potential companies as they scale from early traction to sustained growth.
The fund attracted commitments from a mix of domestic institutional investors, corporate leaders, and family offices. Notable backers include Star Union Dai-ichi Life Insurance as well as the family offices of Haldiram’s, Lotus Herbals, Ajmera Realty, Narayana Nethralaya, and DS Group.
Founded in 2022 by Inflection Point Ventures’ co-founders Vinay Bansal, Ankur Mittal, and Mitesh Shah, Physis Capital focuses on startups from Pre-Series A through Series B. The firm typically invests between $1 million and $3 million per company and has earmarked a portion of the fund for follow-on rounds in its highest-conviction portfolio companies.
Physis Capital has already deployed or committed over 60% of the corpus across 10 startups. Its portfolio features HoReCa supply platform Momentum, sportstech venture Hudle, regional-language streaming service STAGE, and healthtech company Elevate Now, among others.
According to managing partner Vinay Bansal, the strategy centers on founders addressing entrenched, real-world challenges—such as access to capital, healthcare affordability, and products designed for the next wave of consumers outside India’s major metros. He emphasized that the firm seeks teams building with depth and conviction, capable of navigating complex market dynamics.
The remaining capital is expected to be deployed over the next six to eight months. By December 2026, the firm aims to build a concentrated portfolio of 15 to 20 companies, with current priorities spanning consumer tech, fintech, and deeptech.
Looking ahead, Physis Capital plans to launch a significantly larger second fund in the final quarter of 2026. The new vehicle is intended to scale the firm’s backing for growth-stage Indian startups, reinforce its follow-on capability, and capture opportunities emerging as the funding environment stabilizes.
With its maiden fund fully closed, Physis Capital is positioning itself to support founders through capital, high-conviction follow-ons, and strategic guidance, targeting businesses that can compound value over the long term across India’s evolving innovation landscape.
