Bay Capital Partners plans to raise about ₹1,000-1,500 crore for a new fund targeting late-stage tech firms, joining investors chasing India’s rapidly maturing digital economy.
The Mumbai-based firm’s India Digital Opportunities Fund will back 10 to 15 companies in both private and public markets. To lead the vehicle, Bay Capital has brought in former Delhivery executive Sandeep Barasia and ICICI Ventures veteran Tej Kapoor as co-founders and managing partners.
“It's the first time we're doing a dedicated digital crossover fund. We're keeping the first fund fairly measured, so somewhere between ₹1,000-1,500 crore,” said Barasia, co-founder and managing partner, in an interview with Mint. “The idea is to find the right companies to back and deploy capital quickly.”
The launch comes as India's venture and growth equity market, according to the India Venture Capital Report 2026, hit $16 billion last year, buoyed by a doubling of large deals. Investors are increasingly shifting toward crossover strategies that bridge the gap between Series C rounds and initial public offerings.
The fund aims to capitalize on an economy where one out of every three incremental rupees is expected to be transacted digitally, according to Barasia. By targeting companies growing 60-70% annually, Bay Capital is betting on high-growth firms that require specialized guidance to navigate the tough task of taking a venture public.
The fund will target companies that are eyeing a listing within two to three years.
The India Venture Capital Report 2026 found that over the last year, fundraising by venture capital (VC) and growth funds increased to around $5.4 billion, led by a surge in $100 million-plus vehicles. Investors are increasingly focused on companies demonstrating strong unit economics and clearer monetization pathways.
“We want to work with those founders at the growth stage, and there's still a lot of value that needs to be added. These aren't always companies that understand public markets; we're going to help them with that,” Kapoor said.
Prior to his stint at ICICI Ventures, Kapoor served as the country head of India at Chinese conglomerate Fosun International, setting up their India investment strategy, and was the head of investments at South African holding company Naspers.
The partners are prioritizing companies with strong fundamentals and growth visibility, with valuations playing a secondary role. “It's not going to be valuation-driven as much as it is fundamentals-driven,” said Barasia.
For Bay Capital, the new fund is part of its larger legacy of investing in India over the past two decades. In that time, the firm has invested in established companies such as Bajaj Finserv, Marico, and Britannia, as well as new-age tech players such as PolicyBazaar, Lenskart, CarTrade Tech, and Ixigo.