MUFG-backed Dragon Funds eyes $600m second fund for India and Asia-Pacific startups

Dragon Funds plans to begin fundraising next year for a $600 million second fund targeting late-stage financial services, consumer and enterprise businesses. The investor, whose India portfolio includes Meesho and Zepto, expects cheque sizes of $50–80 million.

— Source publishedWed, 16 Sept, 2026, 10:45 IST·First seen Wed, 16 Sept, 2026, 10:56 IST·Source Mint

What happened

MUFG-backed Dragon Funds plans to raise a $600 million second fund next year, targeting late-stage financial services, consumer and enterprise startups in India

Key facts

  • $600 million planned second fund
  • $500 million first fund
  • $400 million deployed from first fund
  • Eight companies funded
  • About half of capital invested in Indian startups

What changed

MUFG-backed Dragon Funds plans to raise a $600 million second fund next year, targeting late-stage financial services, consumer and enterprise startups in India and Asia-Pacific. Its Indian portfolio includes Meesho and Zepto, with $50-80 million investment tickets planned.

Why this matters

Dragon Funds’ planned $600 million vehicle signals continued appetite for scaling Indian consumer and retail-tech platforms, potentially expanding capital availability for high-growth retail partners and suppliers.