Novastar Partners: 10 Key Things You Must Know

Overview

Novastar Partners is an emerging investment firm focused on providing global and domestic investors access to India's expanding private markets. Founded in 2025 by former investment banker Dhruv Jhunjhunwala, Novastar Partners operates as a fund of funds (FoF), channeling capital primarily into private equity and venture capital funds, alongside direct investments in promising portfolio companies. With a vision of capturing India's growth story by backing innovative and scalable businesses, Novastar Partners aims to become a pivotal gateway for institutional and accredited investors to engage with the country’s booming economy. This article delves into ten essential facets of Novastar Partners, from its founding ethos and investment strategy to its leadership and future outlook.

1. Origins and Founding Vision

Novastar Partners was launched in 2025 by Dhruv Jhunjhunwala, a former investment banker with experience at RBC Capital Markets in New York. Jhunjhunwala founded the firm to provide structured, diversified access to India’s private market ecosystem, welcoming global investors who want to participate in high-growth opportunities in sectors such as fintech, healthtech, and deeptech. The firm was initially known as Dhruva Investment Partners before its rebranding to Novastar Partners, signaling its broadened ambition to act as a single-entry platform for India’s next phase of economic growth.

2. Investment Strategy and Fund Structure

Novastar Partners operates as a Category II Alternative Investment Fund (AIF) registered in India and employs a multi-strategy approach. It primarily invests as a limited partner (LP) in selected venture capital and private equity funds, focusing on those managed by top-performing firms with strong track records and global pedigrees. Additionally, the firm makes opportunistic direct investments in standout portfolio companies emerging from those funds. This blend of fund investments and direct stakes allows it to offer investors diversified exposure to India’s fast-evolving new economy.

3. Focus Sectors and Market Themes

The firm targets sectors central to India’s digital and economic transformation. These include software, IT services, fintech, healthtech, edtech, artificial intelligence (AI), and deeptech. By focusing on capital-efficient, scalable companies with strong competitive moats, Novastar aims to back firms at Series B and C stages, where business models have achieved product-market fit and profitability visibility is clearer. These stringent criteria are intended to balance growth potential with downside risk.

4. Fundraising and Capital Deployment Goals

Novastar Partners is targeting to raise an initial corpus of approximately INR 350 crore (around $34 million) with an additional green shoe option of INR 150 crore. The firm plans to spread this capital across five to six venture funds and invest directly in eight to ten high-potential companies. The fundraising and first partnership announcements are expected to conclude in early 2026. Novastar’s focus on curated, high-conviction deployment reflects its aim to build a world-class platform distinguished by transparency, alignment of interests, and rigorous due diligence.

5. Leadership Team and Expertise

Dhruv Jhunjhunwala leads Novastar Partners as Founder and Managing Partner, bringing a rich background in investment banking and technology-focused deals. His co-founder and General Partner is Gaurav Sharma, a Duke University graduate with prior experience at Bridgewater Associates. Together they anchor a leadership team that combines financial acumen with deep knowledge of emerging market private equity and venture capital ecosystems. Their combined experience enables Novastar to identify and nurture the best opportunities for investor growth in India.

6. Investor Alignment and Transparency Philosophy

Novastar Partners differentiates itself through a strong investor-first mindset. The firm commits its own capital alongside investors to ensure aligned interests and shared outcomes. It emphasizes full transparency and highest governance standards, fostering trust and confidence among its investor base. This approach seeks to address concerns common in private market investments by promoting fairness, open communication, and disciplined fund management.

7. Role as a Fund-of-Funds in India’s Private Market

Operating as India’s only dedicated private equity fund-of-funds, Novastar Partners plays a crucial role in bridging global capital with local venture funds. This model provides investors with access to top-tier funds that often have capacity constraints or are difficult to access individually. By pooling capital and leveraging deep relationships with fund managers, Novastar can provide diversified, curated exposure to India’s new economy, mitigating risk through portfolio diversification across sectors and vintages.

8. Addressing Challenges and Competition

India’s private market is growing rapidly but is also characterized by fragmentation and information asymmetry. Novastar tackles these challenges through rigorous due diligence and selective fund backing rather than broad capital spread. Competition from established investment firms and government-run funds exists, but Novastar's focus on transparency, high conviction investments, and alignment offers a distinct value proposition. Additionally, its leadership’s global experience and network provide a competitive edge in sourcing and supporting ventures.

9. Market Opportunity and Timing

Novastar Partners was launched at a pivotal moment when India is entering a 'golden age' fueled by macroeconomic growth, rising domestic consumption, and accelerated digital adoption. As startups and private companies flourish, demand for capital grows, creating opportunities for fund-of-funds to channel institutional capital efficiently. Novastar aims to capitalize on this growth wave, supporting enterprises that leverage technology to disrupt traditional sectors and scale rapidly.

10. Future Outlook and Expansion Plans

Looking ahead, Novastar Partners plans to solidify its fund partnerships in early 2026 and grow its portfolio of investments in India’s private markets. Its aspiration is to become the leading platform for institutional investors seeking private equity and venture exposure in the region. While initial efforts focus on India, the firm’s model and expertise could facilitate future geographic expansion or sectoral diversification. Continued evolution of India’s startup ecosystem, policy enhancements, and digital innovation are expected to fuel ongoing opportunities for Novastar and its investors.

Conclusion

Novastar Partners represents a new wave of investment platforms dedicated to unlocking India’s vast private market potential. Founded by seasoned professionals with a clear vision and investor-aligned philosophy, the firm offers a strategic gateway for global capital seeking exposure to India’s booming sectors. Its multi-pronged approach, combining fund investments with select direct stakes, strives to balance growth and risk for superior returns. As India continues its economic transformation, Novastar’s role as a smart, transparent partner for private market investors positions it as a significant player to watch. How this firm shapes the access and growth trajectory of India’s dynamic startups remains an engaging story for investors and entrepreneurs alike.