Dharana Capital Raises $250 Mn For Second Fund

Urban Company-backer Dharana Capital has raised $250 Mn (INR 2,254.8 Cr) as part of its second growth fund today to back tech and consumer businesses in India. 

With the close of Fund II, the investment firm said that its assets under management have risen to $450 Mn. 

Dharana Capital’s founder and managing partner Vamsi Krishna Duvvur told Inc42 that the firm is looking to back 8-10 growth stage startups operating in the tech and consumer space via the fund. Duvvur, however, didn’t disclose the average ticket size of investment the firm would be targeting. 

“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,” Duvvuri said.

Without disclosing the investors participated in the infusion, the VC firm said in a statement that Dharana’s investors include leading US university endowments, health systems and other non-profits participated in the round. 

Dharana Capital was founded as an offshoot of Vy Capital by Duvvuri in 2022, with the launch of its first fund of $160 Mn. Since its first fund launch, the firm has backed 10 startups such as NoBroker, Zomato (now Eternal), Zopper, LAT Aerospace and Urban Company, among others. 

Its most recent investment was in restaurant-focussed SaaS startup Petpooja, leading its INR 137 Cr funding round back in September 2025.

Duvvuri has been a partner with Vy Capital since 2013 and has been previously associated with Religare Capital Markets Ltd.

In the past year, there was a 39% year-on-year (YoY) jump to $8.7 Bn worth funds launched by firms, which focussed largely on early stage businesses.