VC fundraising advances as dealmaking rebounds

A wave of fundraising is sweeping through India's venture capital landscape as firms such as Nexus Venture Partners, Lok Capital, Chiratae Ventures, Peak XV Partners, and Fireside Ventures gear up to raise fresh capital, but with more selective fund sizes and targeted strategies.

- Priyamvada C

Funds such as WEH Ventures and Avataar Venture Partner are also expected to hit the market in the coming months, while Arkam Ventures is in the final stages of closing its latest fund, multiple people familiar with the developments said.

While dealmaking is resuming after a lull, the fundraising strategies reflect a more selective and conservative approach. Investors are recalibrating amid valuation corrections and tougher exit conditions, experts said.

Several funds have pivoted toward leaner sizes as the funding euphoria of previous years gives way to a more measured approach. This has led several firms to scale down fund sizes or maintain them at previous levels, a stark contrast to the aggressive raises from the years before.