Growth-stage venture firm Physis Capital has closed its first fund at ₹400 crore, giving the firm fresh capital to back Indian startups at the pre-Series A to Series B stage. The fund is expected to be deployed across 15 to 20 companies by December 2026.
Physis Capital’s maiden fund close comes at a time when startup investors are becoming more selective and capital is flowing more carefully into young companies. Instead of chasing a wide portfolio, the firm is choosing a more concentrated approach, with plans to back a limited set of startups across consumer tech, fintech and deeptech.
The fund has drawn support from a mix of institutional and family office investors. Its backers include Star Union Dai-ichi Life Insurance and the family offices of Haldiram’s, Lotus Herbals, Ajmera Realty, Narayana Nethralaya and DS Group.
Founded by Vinay Bansal, Ankur Mittal, Mitesh Shah and Vinod Bansal, Physis Capital invests in startups from pre-Series A to Series B, with cheque sizes ranging from $1 million to $3 million.
The firm has already deployed or committed more than 60 percent of the fund across 10 portfolio companies. Its current portfolio includes Momentum, Olyv, STAGE, Hudle and ElevateNow. Physis Capital expects to complete deployment over the next six to eight months.
For India’s venture capital market, the fund close signals continued interest from domestic capital pools in startup investing, especially when led by investors looking for disciplined deployment rather than aggressive deal-making. Physis Capital’s strategy appears to be built around fewer bets, larger ownership focus and a longer-term view on value creation.
Ankur Mittal said the quality of partners backing the fund stood out for the firm. “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,” he said.
The firm is also preparing for its next phase. Physis Capital said it plans to launch a larger second fund in the fourth quarter of calendar year 2026.
For founders, the development adds another active growth-stage investor to India’s funding ecosystem, particularly for companies that have moved beyond the earliest stage and are looking for institutional capital to scale.
For investors, the fund’s closing also shows that domestic family offices and institutional backers continue to participate in India’s venture story, even in a more cautious funding environment.
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