Former Wall Street banker Dhruv Jhunjhunwala has set up a new investment firm called Novastar Partners, with a plan to raise a ₹350 crore fund focused on India’s growing private market and startup ecosystem. The fund aims to provide investors access to promising technology-led businesses in India, and marks another strong signal of confidence in the country’s expanding innovation economy.
Focus on Growth-Stage Investments
Novastar Partners has been structured as a Category II Alternative Investment Fund, and will operate as a fund-of-funds while also making selective direct investments. This means the firm will invest in other venture capital and private equity funds that already support emerging companies, while also identifying around eight to ten high-growth businesses for direct backing. The strategy is designed to balance risk and return by spreading capital across multiple high-potential areas rather than concentrating bets on early or unproven companies.
The focus is mainly on growth-stage startups and private companies that have already demonstrated product-market fit, revenue momentum, and the ability to scale. Sectors expected to receive major attention include software-as-a-service (SaaS), financial technology, health technology, education technology, IT services, and emerging segments such as artificial intelligence and deep tech. These fields are seen as core pillars of India’s digital transformation, making them attractive to both domestic and international investors.
Experienced Leadership at the Helm
Dhruv Jhunjhunwala brings significant global financial market experience to the table. Having previously worked at a leading investment bank in New York, he has deep expertise in evaluating private market deals and understanding how capital flows into innovation-led businesses. Joining him is Gaurav Sharma, who also has a strong background in global investment management. Their combined international exposure and network are expected to help in sourcing quality deals, building partnerships with fund managers, and ensuring disciplined investment decisions.
The leadership believes that India is entering a strong expansion phase driven by digital adoption, rising consumer demand, and increasing maturity among startups. With better compliance frameworks, improved corporate governance, and stronger founder experience than in previous years, the private market environment is more prepared for long-term capital participation.
Riding India’s Economic Momentum
India’s startup ecosystem has grown rapidly over the past decade, producing new unicorns, attracting global investment, and expanding into new industry categories. The economic environment is also supportive, with rising digital transactions, growing internet penetration, and expanding global interest in India’s technology talent. Novastar Partners aims to act as a bridge between investors and institutions seeking to benefit from this momentum, without requiring them to individually evaluate and manage dozens of startup investments.
The timing of this fund aligns with increasing investor interest in private markets as a long-term asset class. Instead of trying to identify the next breakout company alone, Novastar offers a professionally managed path to participate in India’s broader innovation growth story.
Making Private Market Access Simpler
For many investors, gaining entry into top-performing funds or late-stage companies can be difficult due to high minimum investment amounts or limited access. Novastar Partners aims to simplify this process by pooling capital and opening doors to curated opportunities. It functions like choosing a trusted manager who selects the strongest companies rather than making speculative individual bets.
By widening access and distributing capital strategically, the fund is positioned to support scalable businesses while also offering investors a structured approach to participating in India’s next decade of growth.