YourNest Closes Its Rs 400 Crore Continuation Fund
YourNest is an early-stage VC firm in India. A VC firm (venture capital firm) is a company that collects money from investors and uses it to back young startups. “Early-stage” means it backs very new, small companies. YourNest has just closed a new Rs 400 crore fund. (One crore is 10 million, so Rs 400 crore is 4 billion rupees.) The new fund is called YourNest Continuum Fund I. It was oversubscribed. That means more people wanted to put money in than the fund could take. The firm shared the news on June 23, 2026.
The fund is a special type called a continuation fund. YourNest will use it to keep backing some of its best startups for a longer time. It is a clever way to give early investors their money back while still holding on to good companies. Let us break this down in simple words.
What is a continuation fund, in plain words?
A normal VC fund has a fixed life. Usually it lasts about 8 to 10 years. After that, the firm must return the money to its investors. These investors are called LPs (limited partners). LPs are the people or groups, like rich families and banks, who give money to the VC firm to invest for them.
Here is the problem. Sometimes a startup is doing really well and is still growing fast when the fund’s time runs out. Selling it early would mean losing out on future profit. So what can the firm do?
This is where a continuation fund helps. It is a new pool of money. It buys these strong, growing companies from the old fund. The old LPs then get an exit. An exit is the moment investors cash out of a startup and get their money back. After that, the company keeps growing under the same caring team. It now has fresh “patient capital”, which is money that is happy to wait many more years for bigger results.
Which startups are getting this support?
YourNest said the Continuum Fund I will put follow-on money into six of its best portfolio companies. A follow-on investment is just extra money put into a startup the firm already backs. Portfolio companies are simply the startups a firm has invested in. The six companies are:
- Miko — a maker of AI-powered robots for children.
- Dozee — a health-tech firm that watches over patients without wires.
- Thriwe — a rewards and loyalty platform for brands.
- Opkey — a software testing company.
- Twid — a rewards-based payments startup.
- Exponent Energy — a fast electric-vehicle charging company.
These companies have all grown strong over the years. The continuation fund lets YourNest stay invested in them for the long run, instead of selling too soon.
Who put money into the fund?
The anchor investor in the fund was the HDFC AMC Select Fund of Funds I. An anchor investor is the first big name to put money in. AMC stands for Asset Management Company, a firm that invests money for others. A “fund of funds” is a fund that puts its money into other funds. Having a strong anchor often makes other investors feel safe to join in too.
Apart from HDFC, the fund also drew money from well-known family offices and individual investors. A family office is a private firm that manages the wealth of one rich family. Many of YourNest’s old investors also chose to roll over. This means they kept their money in the new fund instead of taking it out.
Key facts
| Detail | Information |
|---|---|
| Fund name | YourNest Continuum Fund I |
| Fund size | Rs 400 crore (oversubscribed) |
| Fund type | Continuation fund (secondaries vehicle) |
| Anchor investor | HDFC AMC Select Fund of Funds I |
| Companies backed | Miko, Dozee, Thriwe, Opkey, Twid, Exponent Energy |
| Firm founded | 2011 |
| Founders | Sunil Goyal, Sanjay Pande, Girish Shivani |
| Total portfolio | 51 companies (35+ in deeptech) |
| Exits so far | 10, with average 5–6X returns |
One term in the table may be new. A “secondaries vehicle” is just a fund that buys stakes in startups from other, earlier investors, rather than buying brand-new shares.
A quick look at YourNest’s journey
YourNest was started in 2011 by Sunil Goyal, Sanjay Pande, and Girish Shivani. The firm backs early-stage deeptech startups. Deeptech means companies built on deep science or hard engineering. Examples are artificial intelligence, healthcare technology, business software, and mobility (transport and vehicles).
Over the years it has raised three main funds. Its first fund was $14 million and backed 16 companies, including Uniphore and ARYA.AI. The second fund was $30 million across 18 deeptech startups. The third fund was $69 million across 17 companies. About 70% of that third fund’s money has already been put to work.
In total, YourNest has backed 51 companies. More than 35 of them are in deeptech. It has had 10 exits so far. The average return was 5 to 6 times the money it put in. A 5X return means turning Rs 1 into Rs 5. That is a strong result in the startup world.
FAQ
What is a continuation fund?
It is a new pool of money that buys strong, growing startups from an older VC fund. This gives the old investors their money back. At the same time, the company keeps growing with fresh long-term money.
How big is YourNest’s new fund?
The fund is called YourNest Continuum Fund I. It closed at Rs 400 crore. It was oversubscribed, meaning demand was higher than the amount the fund accepted.
Who are LPs?
LPs, or limited partners, are the investors who give money to a VC firm. They can be family offices, banks, big institutions, or wealthy people. The VC firm then invests that money into startups for them.
Which startups will the fund support?
The fund will put follow-on money into six companies: Miko, Dozee, Thriwe, Opkey, Twid, and Exponent Energy.
Why it matters (especially for India / founders)
This deal is big for the Indian startup world. For years, founders have worried about what happens when a fund reaches the end of its life. Would a great company be sold off too early, just to return money? A continuation fund fixes that worry. It lets winners keep running and growing.
It also gives Indian investors a fresh way to get liquidity. Liquidity means quick access to cash. In the past, LPs had to wait many more years for a startup to go public (sell its shares to the public for the first time) or get bought. Now they can get their cash out through a continuation fund instead. The fact that HDFC AMC anchored the deal shows that big, trusted Indian institutions are warming up to these new tools.
For founders, the message is clear. Patient capital is growing in India. Good companies no longer have to rush toward an exit just because a fund’s time is running out. They get more room and more time to build something that lasts.
The takeaway
YourNest’s Rs 400 crore continuation fund is more than just a money story. It shows that India’s venture world is growing up and finding smarter ways to reward both founders and investors. It gives old investors an exit. It gives strong startups more time. That is a win for everyone involved. Expect more Indian VC firms to follow this path in the months ahead.
Source: Inc42
