Bay Capital Partners is launching a ₹1,000-1,500 crore crossover fund targeting late-stage digital firms, according to reports from Mint. 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. As reported by Mint, Barasia explained that this represents "the first time we're doing a dedicated digital crossover fund" and emphasized keeping the fund "fairly measured, so somewhere between ₹1,000-1,500 crore" to deploy capital quickly.
The launch comes as India's venture and growth equity market hit $16 billion last year, according to the India Venture Capital Report 2026, with fundraising by venture capital and growth funds increasing to around $5.4 billion. As reported by Mint, Barasia explained that the fund aims to capitalize on an economy where "one out of every three incremental rupees is expected to be transacted digitally." The fund will target companies growing 60-70% annually and those eyeing a listing within two to three years. The India Venture Capital Report 2026 found that over the last year, fundraising by venture capital and growth funds increased to around $5.4 billion, led by a surge in $100 million-plus vehicles.
According to Mint reports, the fund will target companies that require specialized guidance to navigate public market listings. Kapoor emphasized working with founders at the growth stage, stating there's still value to be added that these companies may not understand about public markets. The partners are prioritizing companies with strong fundamentals and growth visibility, with valuations playing a secondary role. As reported by Mint, Barasia described the approach as "fundamentals-driven rather than valuation-driven" and emphasized the fund's focus on "finding the right companies to back and deploy capital quickly."
The fund launch reflects investors' increasing shift toward crossover strategies that bridge the gap between Series C rounds and initial public offerings. As reported by Mint, investors are increasingly focused on companies demonstrating strong unit economics and clearer monetization pathways. Kapoor brings extensive experience from his previous roles as country head of India at Fosun International and head of investments at Naspers. Bay Capital's new fund is part of its legacy of investing in India over the past two decades, including established companies like Bajaj Finserv, Marico, and Britannia, as well as new-age tech players such as PolicyBazaar, Lenskart, CarTrade Tech, and Ixigo.
