Development-stage venture capital agency Physis Capital has introduced the ultimate shut of its maiden fund at Rs 400 crore ($41.77 million), 4 years after its launch, as India’s startup funding setting stays subdued.

The fund drew backing from a mixture of home institutional traders, company leaders and household places of work, together with Star Union Dai-ichi Life Insurance coverage, the household places of work of Haldiram’s, Lotus Herbals, Ajmera Realty, Narayana Nethralaya and DS Group.

Launched in 2022 by Inflection Level Ventures founders Vinay Bansal, Ankur Mittal, and Mitesh Shah, Physis Capital focuses on startups from Pre-Collection A to Collection B phases. The agency usually invests between $1 million and $3 million per firm and has reserved a part of the fund for follow-on investments in what it describes as its “highest-conviction” bets.

Greater than 60% of the fund has already been deployed or dedicated throughout 10 startups, in response to the corporate. Its portfolio consists of HoReCa provide platform Momentum, sportstech startup Hudle, regional-language streaming platform STAGE and healthtech firm Elevate Now.

“We’re centered on backing founders fixing actual, structural issues throughout India, whether or not it’s entry to capital, healthcare affordability, or constructing for the following wave of shoppers past the metros,” managing companion Vinay Bansal stated.

“We search for groups constructing with conviction and depth,” he added.

The agency stated it plans to deploy the remaining capital over the following six to eight months, constructing a concentrated portfolio of 15 to twenty corporations by December 2026. It’s presently prioritising investments in client tech, fintech and deeptech startups.

Physis Capital added that it intends to launch a considerably bigger second fund within the remaining quarter of 2026.