Dharana Capital Bags $250M Fund for India Tech, Consumer Startups
Overview
Dharana Capital has closed its second growth fund at $250 million. The investment firm will deploy capital into Indian tech and consumer startups, aiming to back founders building for public markets. This move follows a $160 million fundraise in 2022 and signals continued investor confidence in India's burgeoning venture capital landscape.
New Fund Aims for Growth Businesses
Dharana Capital has successfully closed its second growth fund with a substantial $250 million corpus. The investment firm plans to channel these funds into promising technology and consumer-focused businesses operating within India.
Founder and managing partner Vamsi Duvvuri expressed optimism regarding India's listed tech market, predicting significant growth over the next decade as more new-age enterprises pursue public listings.
Focus on Public Market Readiness
The firm emphasizes a long-term approach with its portfolio companies. Dharana Capital backs founders and teams to build durable businesses, preparing them for transition to public markets.
This new fund follows Dharana Capital's initial $160 million fund raised in 2022. The firm typically invests in 8-10 companies per fund, adapting cheque sizes to specific business needs.
Investor Confidence Rebounds
While its portfolio leans towards tech and consumer sectors, Dharana Capital maintains a largely sector-agnostic approach. The primary criterion is a company's potential to achieve standalone profitability. Its team is primarily based in Bengaluru, with a secondary office in Dubai.
The fundraising success aligns with a wider resurgence in India's private equity and venture capital ecosystem over the past 12 to 18 months. Numerous firms, including prominent names like Kedaara and ChrysCapital, have launched new funds.
Fundraising Trends
Data indicates a strong upward trend, with India-focused venture capital funds raising approximately $2.5 billion across 20 new vehicles in the calendar year 2025, surpassing the $1.6 billion secured via 16 funds in 2024 and $1.9 billion across 19 funds in 2023. This increased activity suggests a growing investor expectation for deal flow to accelerate in the coming years.
