Growth-stage venture capital firm Physis Capital has announced the final close of its maiden ₹400 crore fund, marking a significant milestone despite a subdued fundraising environment that has impacted the startup ecosystem over the past few years.
Founded by Vinay Bansal, Ankur Mittal, Mitesh Shah, and Vinod Bansal—the team behind venture investing platform Inflection Point Ventures—Physis Capital focuses on Pre-Series A to Series B startups, investing in companies leveraging technology to solve large-scale structural challenges in India.
Physis Capital Targets High-Growth Startups With USD 1–3 Million Investments
The venture fund typically invests USD 1–3 million per company and follows a sector-agnostic investment strategy, prioritizing startups using technology-driven approaches to address critical gaps across industries.
A portion of the ₹400 crore corpus has been earmarked for follow-on investments, enabling Physis Capital to continue backing high-performing portfolio companies as they scale.
The firm’s investment strategy emphasizes long-term value creation while maintaining a concentrated portfolio approach focused on startups with strong growth potential.
Strong Institutional Backing Supports Fund Closure
The maiden fund received support from a diverse base of institutional investors, family offices, and senior corporate leaders, highlighting continued confidence in India’s venture capital ecosystem despite slower fundraising trends.
Notable investors backing the fund include Star Union Dai-ichi Life Insurance, alongside family offices associated with prominent Indian businesses such as Haldiram’s, Lotus Herbals, Ajmera Realty, Narayana Nethralaya, and Dharampal Satyapal Group (DS Group).
The limited partner (LP) network also includes leaders from private equity firms and executives from recently listed companies, reflecting broad institutional participation.
Over 60% of Fund Corpus Already Deployed Across 10 Portfolio Companies
Physis Capital has already deployed or committed more than 60% of the fund’s corpus, investing across 10 portfolio companies and planning to complete deployment within the next 6–8 months.
Its existing portfolio spans startups addressing diverse challenges across India, including:
- Momentum — hyperlocal commerce solutions for HoReCa businesses
- Olyv — addressing small-ticket liquidity requirements
- STAGE — focused on regional entertainment and cultural preservation
- Hudle — encouraging sports participation and fitness engagement
- Elevate Now — focused on obesity and health management solutions
According to the firm, the portfolio has demonstrated strong growth momentum, contributing to a net asset value (NAV) increase during Q4 2025.
Fund Targets 15–20 Company Portfolio by December 2026
Building on its early deployment momentum, Physis Capital plans to build a focused portfolio of 15–20 companies by December 2026.
The fund is expected to continue investing in emerging opportunities, with heightened interest in sectors including consumer technology, fintech, and deep-tech, areas increasingly attracting investor attention amid India’s digital transformation.
Physis Capital Prepares for Larger Fund II Launch in Q4 CY26
Following the successful close of its maiden fund, Physis Capital is preparing to launch a significantly larger Fund II in Q4 calendar year 2026, underscoring growing investor confidence in its investment strategy.
The firm stated that it has also played a role in bringing first-time investors into the venture capital asset class, expanding participation through a long-term investment approach centered on India’s growth potential.
Partner-Led Mentorship Model Drives Portfolio Support
Physis Capital follows a partner-led investment and portfolio management approach, where each General Partner actively mentors founders within portfolio companies.
The firm positions value creation, founder support, and governance as core principles guiding investment decisions and long-term portfolio management, aiming to build sustainable businesses alongside financial returns.
Leadership Quotes
Commenting on the fund’s thesis, Vinay Bansal, Managing Partner at Physis Capital, said, “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.”
Commenting on the milestone, Ankur Mittal, Managing Partner at Physis Capital, said, “What stands out for us is the quality of partners backing the fund. We’re seeing seasoned operators and institutional leaders choose to work with us, reflecting a shared belief in disciplined investing and long-term value creation in India.”
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Mitesh Shah, Managing Partner, said, “Our approach is built on discipline and consistency. Every investment goes through a rigorous, partner-led evaluation, with strong emphasis on governance, transparency, and downside protection. Over time, this is what drives repeatable outcomes.”
He further adds, “As India’s startup ecosystem enters a new phase of maturity, Physis Capital remains committed to being a believer in founders building for the next decade”.
