Dharana Capital has announced the final close of its second growth fund at $250 million, significantly boosting its dry powder to deploy into India's maturing startup ecosystem. This raise takes the firm's total Assets Under Management (AUM) to $450 million.
The fund is backed by a prestigious roster of Limited Partners (LPs), including US university endowments, health systems, and non-profit foundations. This institutional backing is a strong vote of confidence in the Indian market's ability to generate long-term returns.
FounderStory Intelligence
The "Public Market" Lens
Founded by Vamsi Duvvuri, Dharana Capital differentiates itself with a "public-market-focused approach" even at the growth stage. This means they back companies that demonstrate the discipline, governance, and scale required to list on the stock exchanges.
The firm targets "missionary founders" building large, durable businesses. Their portfolio already includes listed giants like Zomato and soon-to-be-listed unicorns like Urban Company, alongside emerging leaders like Petpooja (Restaurant Tech), Vyapar (SME Accounting), and LAT Aerospace.
"Dharana aims to partner with missionary founders building large, durable listed businesses... supported by US university endowments and health systems."
FounderStory Takeaway
The successful raise of Fund II comes amidst a broader trend of VC firms "stocking up" on dry powder. As valuations stabilize and the IPO window widens in 2026, growth-stage capital like Dharana's will be critical for startups bridging the gap between Series B/C and the public markets.