Raaz was born in Delhi on 5 June 1963. As a student of Kirori Mal College, University of Delhi, he was a part of the dramatic society The Players. He also appeared in plays at the National School of Drama. He decided to focus on a film career and moved to Mumbai where he received a role in Ram Gopal Varma's Jungle. Naseeruddin Shah had seen him perform at the NSD and recommended him to Mahesh Mathai for Bhopal Express and to Mira Nair for Monsoon Wedding. After the success of Monsoon Wedding, Raaz received many roles. His first mainstream film cast as the leading actor was Raghu Romeo, a box office success where Raaz depicts the life of a confused lower-class Indian fellow.