Dharana Capital raises $250 million for second India-focussed fund for tech, consumer bets

Dharana Capital, an offshoot of global investment firm Vy Capital, has raised $250 million (about Rs 2,254 crore ) for its second India-focussed vehicle, taking its total assets under management to about $450 million, according to a statement.

The new fund will invest in growth-stage technology and consumer companies, as India-focused venture capital firms return to fundraising after a prolonged slowdown in investment flows.

The fund said its limited partner (LP) base includes healthcare companies, US university endowments and other non-profits.


Founded by Vamsi Duvvuri, Dharana Capital follows a venture growth strategy, backing companies that are past early-stage risk and closer to scale and profitability.

The firm invests with a view towards public market listings rather than near-term exits through secondary sales.

Dharana Capital’s portfolio includes listed on-demand home services marketplace Urban Company, restaurant software platform Petpooja, LAT Aerospace and Beyond Appliances, a kitchen appliances manufacturer.

These investments were part of its first fund, which was launched with a target corpus of $160 million in 2022.

Dharana Capital has also raised additional capital from its limited partners for co-investments.

“We believe India’s listed tech market cap will grow manifold over the next decade as more new-age enterprises go public. Our goal is to partner with a select few and play a meaningful role in this value creation,” said Duvvuri, who’s also the managing partner of Dharana Capital.

Before founding Dharana Capital, Duvvuri was leading Vy Capital’s emerging markets investments and had invested in food delivery firm Zomato through Vy Capital.

As reported by ET on January 7, limited partners are returning to India-focussed venture capital funds and they are applying sharper filters, prioritising team stability, performance across market cycles, and realised exits over sheer fund size or aggressive growth narratives.

Dharana Capital said that it takes a long-term partnership approach with portfolio companies, working closely with founders to strengthen governance, improve operating metrics, and prepare businesses for public market scrutiny.

Several large venture funds closed capital raises in 2025, including Nexus Venture Partners’ $700 million fund, Accel India’s $650 million fund, Bessemer Venture Partners’ $350 million fund, and Fireside Ventures’ $253 million fund. Firms such as Peak XV Partners and Z47, formerly Matrix Partners India, are also in the market to raise new funds.

According to Venture Intelligence data analysed by ET, India-focussed VC funds raised more than $3.3 billion in 2025, nearly five times the amount raised a year earlier.