Growth-stage venture capital firm Physis Capital has announced the final close of its maiden fund at Rs 400 crore ($41.77 million), four years after its launch, as India's startup funding environment remains subdued.

The fund drew backing from a mix of domestic institutional investors, corporate leaders and family offices, including Star Union Dai-ichi Life Insurance, the family offices of Haldiram's, Lotus Herbals, Ajmera Realty, Narayana Nethralaya and DS Group.

Launched in 2022 by Inflection Point Ventures founders Vinay Bansal, Ankur Mittal, and Mitesh Shah, Physis Capital focuses on startups from Pre-Series A to Series B stages. The firm typically invests between $1 million and $3 million per company and has reserved part of the fund for follow-on investments in what it describes as its 'highest-conviction' bets.

More than 60% of the fund has already been deployed or committed across 10 startups, according to the company. Its portfolio includes HoReCa supply platform Momentum, sportstech startup Hudle, regional-language streaming platform STAGE and healthtech company Elevate Now.

'We're focused on backing founders solving real, structural problems across India, whether it's access to capital, healthcare affordability, or building for the next wave of consumers beyond the metros,' managing partner Vinay Bansal said.