IndusBridge raises Rs 2,000-crore fund for defence bets

New Delhi: Defence-focused PE fund IndusBridge Ventures has raised Rs 2,000 crore from investors, making it the largest fund raised in this category, according to people familiar with the matter.

ET was the first to report in July 2025 that former Citi executive Ravi Kapoor was planning to set up the fund. At the time, Kapoor said the fund was targeting a Rs 1,000 crore corpus.

"Defence exports are set to touch Rs 50,000 crore," said Kapoor, cofounder of IndusBridge Ventures. "India has geopolitical relationships with countries whose defence spending is on the rise. This, coupled with the push towards indigenisation of defence manufacturing, is creating investment opportunities."


He confirmed that the fund size had been doubled.

Kapoor was with Citi until 2023, where he headed its banking, capital markets and advisory business for India and South Asia. He subsequently moved on to pursue entrepreneurial ventures.

IndusBridge tapped various sources, including family offices, high net-worth individuals, defence companies and banks, to raise the fund. It will focus on investing in Indian companies whose products serve both domestic and international markets.

"There is a need to build the sovereign stack," said Rahul Devjani, cofounder of IndusBridge Ventures. "There is a vulnerability in the technology we use. We cannot have all the software built outside India. There is also a need for supply chain resilience."

Devjani previously worked with RTX Corporation, the world's most valuable defence company by market capitalisation.