Synopsis
Bay Capital is launching a Digital Opportunities Fund to invest in public and private digital businesses in India. Sandeep Barasia and Tej Kapoor will be joining in as cofounders and partners. The Category II AIF will back high-growth companies, working closely with cofounders and focusing on India’s long-term digital future.“The firm is preparing to launch a Digital Opportunities Fund, a Category II Alternative Investment Fund designed to back high-quality, high-growth businesses, partnering closely with founders who are building enduring companies for India’s long-term digital future,” Bay Capital said in a statement. “The new fund will selectively invest across both private and public markets.”
The firm did not disclose the fund size but said it plans to make 10-15 investments. Bay Capital had earlier backed companies such as Lenskart, Ixigo, CarTrade Tech and PolicyBazaar.
Barasia and Kapoor will combine Bay Capital’s institutional investing experience with their operational expertise and networks across India’s digital founder ecosystem, the statement said.
Barasia stepped down from Delhivery in May 2024 after over nine years at the logistics company, where he was part of the core leadership team alongside founder Sahil Barua. Barasia played a key role in its public listing, and also served on the board.
He was appointed an advisor to Bay Capital in February 2025.
Kapoor started in the investment ecosystem in 2009 when he joined South Africa's Naspers Group. This was followed by stints with Chinese investor Fosun RZ Capital and IvyCap Ventures before he joined ICICI Venture in May 2024.
In a white paper published last year, Bay Capital noted that while India’s listed digital-first companies were valued at more than $90 billion, the market remained concentrated and at an early stage of maturity. It added that nearly a quarter of this value is accounted for by a single company, without naming Zomato’s parent Eternal, though it described the concentration as a sign of market depth rather than a concern.
“We have had the privilege of backing transformational companies such as PolicyBazaar, Lenskart, CarTrade and Ixigo as they scaled into market leaders. That experience strengthens our conviction in India’s digital economy,” said Siddharth Mehta, founder and chief investment officer, Bay Capital Partners. “The India Digital Opportunities Fund reflects this conviction—as a dedicated platform to back the next generation of founders.”
“With Tej’s founder relationships and ecosystem insight, Sandeep’s operational leadership and strategic perspective, and Bay Capital’s institutional platform, we believe we have assembled a strong team to capture this opportunity,” Mehta added.
Alongside traditional private equity firms investing in late-stage and pre-IPO companies, several new funds have emerged over the past 12–18 months targeting digital-first businesses at a similar stage. These include secondaries-focused Kenro Capital, which was founded by former Peak XV Partners managing director Piyush Gupta; PixelSky, anchored by boutique investment bank IndigoEdge; and Gurugram-based Oister Global’s joint venture with Tribe Capital.
On April 9, Asia-focused investment firm TR Capital also announced it plans to invest $1 billion in India through secondary transactions over the next five years.
