Bengaluru-based venture capital firm Dharana Capital on Monday announced that it has raised $250 million for its second growth fund.
Dharana Capital said its investor base includes leading US university endowments, health systems, and other non-profit institutions.
The new fund will focus on backing next-generation, category-defining technology and consumer businesses in India, the firm said in a statement.
“At Dharana, our vision is to back missionary founders building large, standalone, durable listed businesses. We believe India’s listed tech market cap will grow multi-fold 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 Vamsi Duvvuri, founder and managing partner of Dharana Capital.
With the latest raise, Dharana Capital’s total assets under management have increased to $450 million, the statement added.
Founded in 2022, Dharana Capital is focused on backing technology and consumer businesses, primarily in India and other emerging markets. The firm’s current investments include Urban Company, LAT Aerospace, Petpooja, Vyapar, Botlab/Vayudh, Itilite, and Beyond Appliances.
Last August, Dharana Capital participated in smart kitchen technology company Beyond Appliances’s $4-million Series A funding round, which was led by Fireside Ventures. In September, the venture capital firm had also led a $15.5-million funding round in software-as-a-service platform for restaurants Petpooja.
Several venture capital firms have recently raised or closed new funds, signalling renewed investor interest in the Indian startup ecosystem.
In December last year, Nexus Venture Partners closed its $700-million eighth fund to back early- to growth-stage startups in India and the US, with a focus on sectors such as artificial intelligence, enterprise software, fintech, and consumer technology.
In November, Blume Ventures secured $175 million in the first close of its fifth fund and said it plans to reach $250-275 million by the final close. Earlier, in October, Chiratae Ventures raised $150 million in the second close of its fifth fund, strengthening its capital base for investments in technology startups.
