Physis Capital Reaches First Close Of $50 Million Fund

Growth stage focused Physis Capital today announced its first close of CAT II $50 million fund. The first close is reached at $7 million and is on track to do the final close in 2024. Physis capital will actively look to invest from its first fund by Q3 2023 in startups looking to raise pre Series A to Series B capital. The fund will also focus on strong deal sourcing and pipeline building strategy which would be a key driver to Physis’ success in accessing unique opportunities to invest.

“We have seen investors’ interest remaining steady with respect to startup investments in the Indian startup ecosystem. ‘Smart money’ i.e. experienced investors realise that downturn economic cycles are the best times to identify great businesses and invest in them. Hence, we’ve received good interest in the past few months, especially from new investors who are backing the GPs and investing with us for the first time, looking at our track record. Physis is led by a strong investment team with deep experience in funding and supporting startups over the last 5 years and that has generated strong returns for its investors,” said Ankur Mittal, partner, Physis Capital.

Physis Capital will be focused on identifying companies that have a solid business model and are likely to generate sustainable returns in the long-term, while avoiding those with high cash burn, high capex requirements, and low customer stickiness. The fund, which is a sector agnostic fund, is looking to build a portfolio of 15 to 20 startups with an average ticket size of $2.5 million, claimed by the company in an official statement.

“Our biggest strength will continue to be the support we offer to our startups post investment – helping them attract good talent, build partnerships, generate revenue opportunities, strong focus on cost management and compliance, and support future debt and equity funding rounds using the deep relationships built with different stakeholders in the startup ecosystem,” said Vinay Bansal, partner, Physis Capital.