Varalaxmi signed on to star in Vignesh Shivan's romantic drama film Podaa Podi (2012) during June 2008, citing that the opportunity to portray a London-based Dancer had excited her. The film went through a protracted development, taking four years to make, before being released in October 2012. Co-starring alongside Silambarasan, Varalaxmi won critical acclaim for her performance. Rediff.com noted she was the "scene stealer" and added "she comes across as a genuine, warm person, able and willing to accept those around her for themselves, and rattles off her dialogues with such spontaneity and charm that she wins you over right away". Likewise, a critic from Sify.com wrote she "is the big surprise here as she makes a promising debut and brings alive her character with not just those smart lines, but with the kind of confidence and candour". The film also performed moderately at the box office, and performed particularly well in the multiplexes. Soon after the film's release, Varalaxmi worked on Sundar C's masala film Madha Gaja Raja, alongside Vishal, but the film remains unreleased owing to financial troubles.