Mumbai, May 14 -- A wave of fundraising is sweeping through India's venture capital landscape as firms such as Nexus Venture Partners, Lok Capital, Chiratae Ventures, Peak XV Partners and Fireside Ventures gear up to raise fresh capital, but with more selective fund sizes and targeted strategies. Funds such as WEH Ventures and Avataar Venture Partner are also expected to hit the market in the coming months, while Arkam Ventures is in the final stages of closing its latest fund, multiple people familiar with the developments said. While dealmaking is resuming after a lull, the fundraising strategies reflect a more selective and conservative approach. Investors are recalibrating amid valuation corrections and tougher exit conditions, experts said. Several funds have pivoted toward leaner sizes as the funding euphoria of previous years gives way to a more measured approach. This has led several firms to scale down fund sizes or maintain them at previous levels, a stark contrast to the aggressive raises from the years before. "India's venture scene is suffering from too much money and too few investable targets. Funds raised during the 2021 boom have left about $20 billion of dry powder on the sidelines," said Siddharth Mody, partner at JSA Advocates & Solicitors. "Managers are now three years into their investment periods, yet have deployed barely half of what they raised because many growth-stage founders are still anchored to peak-cycle valuations while revenue curves trail projections." This mismatch has created a "deal-making bottleneck," with term sheets concentrating around a handful of breakout stories while other startups struggle to secure funding, Mody added. "Limited partners see this mismatch and are in no hurry to write new cheques. That's why India-focused fundraising collapsed to $2.7 billion in 2024, its lowest since the pandemic, even though the macro backdrop is healthy," he said. "General partners are responding by shrinking vehicle sizes, extending deployment timetables, and keeping larger follow-on reserves for the few companies that merit additional capital. Until exits accelerate and pricing expectations normalise, expect leaner funds and a slower tempo of initial investments. Dry powder is no longer a growth accelerant but is rather an opportunity cost weighing on returns," Mody explained. Nexus Venture Partners is eyeing a $500-600 million corpus for its eighth fund, a slight decrease from its previous $700 million fund that invested in India and the US, the people cited above said. Chiratae, meanwhile, is looking to raise over Rs.2,000 crore to back Indian startups, while Lok Capital plans a $250 million fifth fund, they added. Nexus did not respond to Mint's request for comment, while Arkam and Chiratae declined to comment....