As VC exits pile up, 2026 will test fundraising prospects of independent funds
India’s venture capital industry saw a significant churn through 2025, with several senior investors changing roles, exiting firms or exploring independent paths amid a prolonged sectoral reset.
Data shared by executive search firm Longhouse shows the industry saw nearly two dozen high-profile departures and lateral moves during the year. The exits add to a growing list of general partners moving on from large funds, raising questions about whether their experience and track record will translate into solo fundraises at a time when limited partners are becoming increasingly selective.
Among the latest exits are Pranay Desai, managing director at Z47, and Mohit Sadaani, a venture partner at Z47-anchored DeVC, according to people familiar with the matter. Z47 has backed companies such as Ola, Razorpay and OfBusiness.
“Large capital deployment in India becomes difficult beyond a certain scale. While the IPO market has improved this year, the number of large listings is still limited, and where they do exist, private equity tends to dominate over venture capital,” said Anshuman Das, CEO of Longhouse. “That makes it unlikely for a VC firm to raise a very large fund, creating room for some partners to go independent, raise smaller $50–100 million funds, and take a more measured approach where they are able to score exits.”
“It won’t be an easy journey for independents to raise capital, as reflected in how difficult it has been this year for several smaller and mid-sized firms to raise follow-on funds of $100–200 million,” he added.
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