Physis Capital, the growth-stage investment arm of Inflection Point Ventures (IPV), has successfully raised over ₹200 crore for its first fund. This fund aims to invest in 15-20 pre-Series A to Series B startups within the next 12-15 months.
The fund will write initial checks ranging from ₹8 crore to ₹12 crore, with potential follow-on investments of up to ₹25 crore. While sector-agnostic, it will avoid real money gaming, alcohol, meat, and crypto. The fund prioritizes startups with strong unit economics, a clear path to break-even, and at least $1 million in revenue.
Physis Capital expects to complete its capital deployment by mid-to-late next year and will continue seeking additional commitments from family offices.
Physis expects to complete its capital deployment by mid to late next year and will continue engaging with family offices for additional commitments during this window. | Photo Credit: istock.com
Physis Capital, the growth-stage investment arm launched by the founders of Inflection Point Ventures (IPV), has raised over ₹200 crore for its maiden fund and plans to close the fundraising over the next six to nine months.
The funds will be invested into 15–20 start-ups over the next 12–15 months, targeting pre-Series A to Series B companies with strong revenue traction.
“We’ve hit our base target of ₹200 crore, which gives us room to invest in up to 20 start-ups and back the top performers with follow-on capital,” said Ankur Mittal, Partner, Physis Capital. “From here, any additional money raised will be deployed into those 3–4 breakout companies.”
Physis Capital is positioning itself differently from IPV, which largely invests in early-stage deals. The new fund will write first cheques ranging from ₹8 crore to ₹12 crore, and follow-on investments of up to ₹25 crore.
Four investments have already been made, and the fifth is expected to close soon. While a few deals have been sourced from the IPV network, Mittal said the pipeline includes a mix of non-IPV start-ups as well.
The fund is sector-agnostic, but will steer clear of spaces such as real money gaming, alcohol, meat, and crypto due to regulatory and ethical considerations. Physis Capital is also wary of high-capex and long-gestation businesses, given the fund’s seven-year investment horizon.
“We are not looking for profitability on day one, but we do require strong unit economics and a visible path to break-even,” Mittal said. “We typically look at startups with at least $1 million in revenue and well-established product-founder fit.”
While the fund is open to leading rounds, it prefers to co-lead in IPV portfolio companies to avoid conflicts of interest. Exit strategies will be driven by secondary transactions and strategic M&As, though IPOs may be considered opportunistically.
“We’re hands-on when it comes to diligence. Even if it’s a dark store visit, one of the partners or co-investors will go. That gives us better visibility into operational execution,” Mittal added.
Physis expects to complete its capital deployment by mid to late next year and will continue engaging with family offices for additional commitments during this window.
Published on June 18, 2025
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