Zomato, Urban Company backer raises $250M for India-focused fund
What's the story
Dharana Capital, an offshoot of VY Capital, has successfully raised $250 million for its second India-focused fund. The growth-stage investment firm plans to use the capital to invest in technology and consumer businesses in the country. With this new fund, the Zomato, Urban Company, and NoBroker backer's total assets under management have increased to $450 million.
Profile
Diverse investor base
The new fund has attracted a diverse range of investors, including US university endowments, healthcare companies, and other non-profit organizations. This wide-ranging investor base highlights the growing interest in India's technology and consumer sectors from global institutions.
Market outlook
Dharana Capital's vision for India's tech market
Vamsi Duvvuri, the founder and Managing Partner of Dharana Capital, expressed his optimism about India's tech market. He said he expects the country's listed tech market capitalization to 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," Duvvuri added.
Investment approach
Investment strategy and portfolio
Dharana Capital has a long-term approach with its portfolio companies, backing founders and teams to build durable businesses. The firm prepares these companies for their transition to public markets. Even though its portfolio mainly comprises tech and consumer businesses, the firm is sector-agnostic and focuses on companies that can become profitable on a standalone basis.