Physis Capital Announces Final Close of Maiden $41.8 million Fund

The fund received strong support from Indian institutions and family offices, which is a significant achievement during a period when fundraising has been challenging over the last two to three years.

Physis Capital invests in startups from Pre-Series A to Series B stages, usually investing between USD 1 million and USD 3 million. The fund invests across different sectors and mainly supports startups that use technology to solve important problems in India. It has also kept part of its fund for future investments in its best-performing portfolio companies.

Speaking about the fund’s strategy, Vinay Bansal said the company wants to support founders who are solving major problems in areas such as access to finance, affordable healthcare, and services for consumers outside metro cities. He added that Physis Capital looks for teams with strong vision and deep commitment.

The fund is supported by a strong group of investors, including institutions, family offices, and senior business leaders. Some major investors include Star Union Dai-ichi Life Insurance, along with the family offices of Haldiram’s, Lotus Herbals, Ajmera Realty, Narayana Nethralaya, and Dharampal Satyapal Group. The investor group also includes leaders from major private equity firms and executives from recently listed companies, showing strong confidence in Physis Capital’s investment strategy.

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.”

Physis Capital has already invested in 10 startups and plans to complete the remaining investments over the next 6–8 months. The fund has already invested or committed more than 60% of its total corpus in a diversified group of companies focused on solving problems for Bharat and growing Indian markets.

Its portfolio includes Momentum (formerly Urban Harvest), which provides hyperlocal commerce solutions for HoReCa businesses; Olyv, which helps people with small-ticket loan and liquidity needs; STAGE, which promotes India’s regional culture and entertainment; Hudle, which encourages fitness and sports participation; and Elevate Now, which focuses on obesity management.

These companies are already showing strong growth, which helped increase the fund’s net asset value (NAV) in Q4 2025.

Building on this progress, Physis Capital plans to build a focused portfolio of 15–20 companies by December 2026. The fund will continue investing in new startups, especially in consumer-tech, fintech, and deep-tech sectors.

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".

Physis Capital has also helped bring many first-time investors into the venture capital space. These investors share confidence in India’s long-term growth potential and believe in disciplined early-stage investing.

The company is also planning to launch a much larger Fund II in Q4 CY26, showing strong growth and increasing investor confidence in its strategy.

Physis Capital follows a partner-led investment approach, where each General Partner personally guides and mentors the founders of its portfolio companies. The firm strongly focuses on creating long-term value and maintaining good governance as key parts of its working philosophy.

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