Rishabh Pant, an Indian cricketer, has made an investment in TechJockey.com, which is a rapidly expanding online marketplace for software solutions.
In exchange for INR 7.40 crore, Pant purchased a 2% ownership in the company, which resulted in the company being valued at INR 370 crore (about USD 44.17 million).
TechJockey’s founders, Akash Nangia, a former vice president at Zomato, and Arjun Mittal, a former executive at McKinsey, established the company in 2017 with the purpose of connecting software sellers with small enterprises all throughout India. Beginning of 2024, the company expanded its activities into the United States, as part of its global expansion plan.
Pant’s Vision Behind the Expansion
When Pant made the decision to invest in TechJockey, his previous expertise in professional sports had a significant role. Having the appropriate technology for live streaming, commentary, and DRS is absolutely necessary in the sport of cricket. When you have the appropriate tools, it is easier to make intelligent decisions. Pant added that because he had witnessed the efficient growth that software can bring to organisations, it made perfect sense for him to invest in TechJockey.
Pant’s participation was enthusiastically welcomed by the leadership of the company, with Nangia emphasising the value of having a cricketer of Pant’s calibre on board. Nangia stated that it is not simply about Pant’s popularity, he has a profound understanding of business.
Company’s Current Revenue and Expansion Plans
With the new capital, TechJockey intends to increase the number of global merchants on its platform, as well as scale up its marketing activities and grow its footprint in the United States. According to Nangia, who has noticed the development and potential of SaaS companies, the TechJockey is well-positioned for expansion thanks to its SaaS-based approach.
A revenue of INR 125 crore was reported by TechJockey for the fiscal year 2024, with ad sales contributing between INR 7 and 10 crore. During the fiscal year 25 (FY25), the firm intends to achieve a revenue of INR 170-180 crore, which would be driven by Pant’s investment and the global expansion strategy.
Cricketers Putting Their Money Into Startup Sector
Rishabh Pant is the latest addition to the rising number of Indian sports personalities who have invested in startup sector. KL Rahul, an Indian cricketer, made an investment in the D2C men’s lifestyle firm Metaman just a month ago. In July, South African cricketer AB De Villiers supported the Indian supplement brand Supply6. A cricket player named Shreyas Iyer made an investment in the health technology platform known as Curelo earlier this year.
In the year 2023, a number of other notable players, including Sachin Tendulkar, Virender Sehwag, Sourav Ganguly, and Hardik Pandya, made financial contributions to a number of other Indian companies. This exemplifies a larger trend in which athletes are increasingly moving to business ownership and investments.
Today, the term ‘Startup’ is familiar to all of us. In the past few decades, startups have made every activity easy. There is an app for almost everything. You need groceries, clothes, in-home services, everything is just one click away.
A startup takes birth from a mere idea that comes out of passionate minds. For starters, it takes an idea, a team, and proper planning to begin with.
Along with all these, the most important thing in any startup is an investment. Sometimes, a small team can’t put in their savings and make it work. They need investment from outside sources as well.
Ordinary people can make an investment in a startup too as now, there are various platforms available where you can invest. In this way, you get a piece of the company and a share in profits in exchange for your investment.
In simple words, a startup is a company that is in the early stage of business. It is founded by one or more entrepreneurs. It is found that when an entrepreneur sees the demand for a product or service in the market and decides to produce or develop it.
Startups often need financing. The finance sources can be family and friends, bank loans, or crowdfunding. The founders can also take the help of venture capitalists for investment.
A startup comes with a high risk. There is a big possibility of failure on the one hand. On another, it can flourish well and turn out to be lucrative.
It offers a unique and challenging space for the whole team. The best part is that a startup is full of new ideas and innovations. This makes it a perfect learning space for new employees and interns.
What is Startup Investing?
Startup investing means investing in a company in its initial stage. You get equity, a part in ownership, and a share in future profits in exchange for your investment.
Investing in a startup at an early stage can be both profitable and loss-making. If the startup turns out to be a failure, then you lose your investment. If it flourishes, you will flourish in profit too.
For the most part, startups try to raise investments at an early stage. Investments can also be raised later when the startup is at a growing stage.
Startup investing can be risky. But nowadays, many people seem interested to take this risk. Considering the positive side, this risk can be of great worth.
Why should you Invest in Startups?
Number of Startup Investment Deals in India
Some of the reasons one should invest in startups are:
Startup investing offers great growth potential. Indeed, it is risky but it can also be rewarding.
Startup investing is a good idea because it gives you a sense of belief in a new idea.
It helps you to contribute to an appealing idea that you want to see in the world.
It helps to develop stronger personal connections. When you have a share in the startup, you feel more connected to it.
One of the best reasons is that it gives a sense of fulfilment. Seeing an idea come to life with you being a part of it. It is a feeling so many people like to feel.
How to invest in startups in India?
Startup Investing Platforms in India
Today is the digital age. Digitalization has made fundraising or investing easier with the help of online platforms. It is now possible for ordinary people to invest in startups through crowdfunding sites. There are certain terms and conditions like fixed least amount, net worth, and income. Every platform has its own rules.
Here are some startup investing platforms in India:
The platform has grown from 100 investors to over 6,000 members today comprising CXOs, HNIs and top professionals. With IPV, one can start investing in startups with as low as Rs. 2.5L per startup. According to the recent Nasscom Indian Tech Startups Ecosystem report, IPV has emerged as one of the most active angel platforms in India.
IPV has investors across the globe in over 45 countries. Their robust proprietary 150+ due diligence parameters ensure deep evaluation and higher chances of success in invested startups. The platform has invested over Rs. 350 crores in 110+ startups. Some of the prominent startups they have invested in are BharatPe, Toch, BluSmart, Otipy, Phable and Uable.
LetsVenture
Lets Venture Homepage
LetsVenture is one of the leading startup investing platforms. The first beta of LetsVenture was launched in the year 2013. Shanti Mohan, entrepreneur and angel investor is the founder and CEO of LetsVenture.
It is a platform that connects startups with authorized investors. It makes the process of fundraising super easy and efficient for both investors and startups.
LetsVenture has helped 300 plus startups raise $200 Million in their initial stage. These funds are raised from 28 active syndicates, 6500 plus authorized investors, micro funds, and family offices.
AngelList India
AngelList India Homepage
AngelList is another great platform that connects startups with investors. It was founded in the year 2010, by Naval Ravikant and Babak Nivi.
This idea began when the two founders made a list of 25 investors with whom they would share lucrative startups to invest in. They named this list ‘AngelList’.
AngelList has funded over 400+ startups with more than $2 Billion worth of investments. One has to qualify as an Eligible Angel Investor to invest here.
SeedInvest
SeedInvest Homepage
It is a crowdfunding platform that gives access to investors to invest in startups. SeedInvest is a reliable platform as it has a strict criterion for company selection. However, it is always good to have detailed research before investing.
Angel Investment Network
Angel Investment Network
Angel Investment Network is one of the leading startup investing platforms. It offers a variety of locations, industries, and investment sizes. This variety makes it a great marketplace for both startups and investors.
The best part is that you can register for free as an investor. Investors can directly message and chat with their desired entrepreneurs. This develops trust between both parties.
Startup investing is a super-risky business. It’s kind of like a gamble. No matter how detailed research one has conducted. We can never predict the exact success or failure of a startup.
One should not indulge themselves in it only for the sake of a share. One must be calculative and be prepared if their investment goes in vain.
Nowadays, people can invest in private equity funds that specialize in venture capital funding. This allows them to make an indirect investment in a startup.
In the end, startup investing often works on extremities. Either it makes huge profits or drains you of your entire investment.
FAQs
Which startup is best to invest in India?
Some of the best startups to invest in India in 2022 are:
Meesho
Infra
PharmEasy
CRED
Groww
How can I become a startup investor in India?
Join a group of angel investors, Get involved with incubators and accelerators or you can also sign up on one of the startup investing platforms.
Which city is best for startups in India?
Bangalore is known as the Silicon Valley of India and is known as the best city for Startups.
Which are the top Startup investing Platforms in India?
The article is contributed by Mrs. Deepti Sharma, Managing Director, Thinker Place.
Investors are always on the lookout for ideas that are unique and can be of use in whatever sector they are being pitched in. Every idea, irrespective of what the idea contains, can be a great idea depending on the pitching method and the solutions/interactiveness that the idea has with its target audience. Ultimately, it all boils down to the product that you have and the potential – whether prominent or hidden, it contains.
From personal experience, investors always want a thorough breakdown of potential products they are going to invest in. The standard breakdown questions by investors include the following:
What is your idea/product? – A question to check what made you come up with the product and to know the root of development and the thinking process behind developing something.
How does it help? – Products are made for consumers. Investors look for your target audience and the functionality of your product through this question. Products/ideas that provide immediate solutions or benefits to the target audience are ranked higher for investors.
What does it do? – A trick question by investors to know the end-to-end process of a product. This is a critical question where investors check the development state of a product and make decisions on the amount to be invested.
Materials used in the product – Investors today are always on the lookout for sustainability. The materials used in a product give investors a judgment on the cost of making a raw product and can help them determine the selling price. As an entrepreneur, this is also a key moment to display hidden trinkets and other special features that your product may hold.
The “Units Sold” question – After the idea and the products have been pitched, investors ask about the market trend and public reaction to the product. This is a statistical question that is answered purely in numbers, raw data, and through a variety of content.
Additional cost questions – The “make or break” question while pitching. Cost questions by investors look at individual raw material costs, production costs, the team’s cost, and most importantly – sales and marketing costs.
PRODUCT IS KEY. There is no other way around it. Taking an idea and perfecting it to near-perfection is what all entrepreneurs and business owners strive for. On an added note, investors fall head-over-heels for PR activities and recognition that a product or entrepreneur has received. In short, the more recognition or “brand awareness” that you or your product has, the better.
As an entrepreneur, you are not only pitching for the idea and the product that you’ve worked so hard on, it is also a pitch for trust. Investors look at your convincing power, your confidence, your real-world knowledge, your market knowledge, and above all, how far you will go for your product.
Statistically, most investors have already decided whether or not to invest in your startup business based on the first 5-10 minute interaction you’ve had with them.
A quick guide to getting into the good books of investors:
Do your research – Knowing who you are pitching to, their background, their job profile and work history, what and who they’ve invested in previously, and any other details can help you in your pitch.
Dress to impress – There is no excuse for not looking professional. Think of it as a very important job interview. Though the new-found trend is to dress as one sees fit when attending business and pitch meetings, dressing in formal attire is a classic move that can never fail. Professional attire emits seriousness and intent and makes a lasting impression on investors.
Be confident – Pitch meetings can be nerve-wracking. Being anxious and nervous is a natural feeling for most anybody. Displaying what you’re feeling inside can leave a bad impression on your investors. From the moment you meet your investors, your confidence should be on full display. The way that you walk and the firmness of your handshake or head nod can assist you in showing confidence and seriousness.
Being organised – Before you start your pitch presentation, or before sharing your business module with investors, make sure to have all your documentation, gadgets, flashcards, products, and other necessary documents and items organised. One way investors know that you are not-so-serious about having them as investors is by being flimsy with documents and slow with setting up your presentation. For investors, time is of the essence, being organised always goes a long way in assisting your pitch presentation.
Portray yourself as the subject matter expert – The pitch for investment is all for you and your product, so it is only natural that you know thoroughly all about the origins of the product, where your product stands in the market, and the complete inside work of your business. Investors look for the devotion and near-obsession that entrepreneurs have when it comes to their products. This point answers the very important “Why should we invest in you?” question quite clearly.
Quick and logical thinking – Most of the time, based on data and other statistics that are provided to them, investors hunt to find defects or loopholes in your pitch. As such, they come up with scenarios or situations for the entrepreneur to answer. An entrepreneur should have quick and logical thinking based on real-world statistics about their product and should be able to answer all questions smoothly. Roleplaying different situations, and foreseeing or predicting the future of your product and the company is a sure way to answer most questions belonging to this category.
Negotiation skills – Lastly, but most importantly, entrepreneurs need to have a clear picture about what’s the purpose behind the investor pitch meeting. The skill to bargain and negotiate or “not settle” for something that’s outside the expected quotation is vital for success.
To conclude, getting an investment is like a game of chess. Playing the right move at the right time to pique the interest of your investors and to keep them always occupied with you and your product is the key to a perfect pitch. What really matters is convincing investors to trust you and your product and to see the vision that you have. With the right attitude and confidence, getting investors on board is easy.
The article is contributed by Mr. Saarthak Bakshi, Chief Executive Officer (CEO) of the International Fertility Centre.
Mr. Saarthak Bakshi is recognized as Forbes 30 under 30 ASIA, 2017 for HealthCare and Science. He is known for his persona as an engineer, an entrepreneur and a social worker. He flourished his career by working with reputed companies – Infosys and Ernst & Young – as a Software Engineer and IT Risk and Assurance Analyst respectively. He soon realized that he has an inborn passion for entrepreneurship and went on to launch a slew of ventures including IFC.
As we know that starting a business can be expensive. We may have less cash in hand to get started without some outside help but sometimes, it is important and beneficial to have investors in your business. It gives you a sort of security. Investors in your business are different from lenders. Instead of monthly repayment like lenders, investors give you money in exchange for ownership of part of your business. Apart from money they can also be an important source of business-related advice and strong business networks, which you can utilize for your own business. Therefore, it is important to draw the attention of the investors to make their decision firm to invest in your business. Most important thing is that investors want to see a return on their investment. They make money by putting their money into the growing business. Therefore, how to woo them plays a crucial role in the success of any startup. It is not necessary that every investor looks for the same things but still there are chances of commonality.
So, here are ten points to make the investors interested in your startup.
Having a passion for their startup is easy to be found in new business founders. But how your business will help the investors to gain profit is a deciding factor for their interest. They want your confidence justifying that it is an improvement over existing products or is a new way to address an old problem. You should demonstrate your firm belief and confidence in your business.
A market-oriented deal
It is one of the important points that to pitch potential investors, familiarity with the market is generally the safest option. Startup investors look for opportunities in sectors that fit their interests and expertise. They already have an idea of how businesses become profitable in this industry and what it will take for your business to yield a return on its investment. Thereafter reviewing and organizing your proposal, go for the market research to pitch in a suitable investor.
Demonstrate your success rate
A track record of previous success is critical to attracting the interest of investors who can take your venture into your business. Most of the time successful startups are a rarity, therefore it becomes difficult for inexperienced entrepreneurs to convince the investors to lend their capital. But, if your business can captivate the market and the customers and if your track records give a guarantee of success, then you have a fair chance.
Competitive advantages
Most of the time investors look for satisfactory answers to the following question: What makes your product/service unique? There must be something about your product that sets it apart. If your product and you’re the first to the market, then it’s the best thing. However, most startups are entering existing marketplaces. What then makes you different? And how affordable it is in comparison to the already existing quality?
Have an emotional approach with logic
Whenever you are pitching with your investor, you must hit them on both emotional and business fronts. Include a story with your plan. Make it appeal to real-life scenarios and how your idea will solve the problem. At the end of the day, investors look for founders who have passion, motive, and experience to create a profitable as well as a sustainable business. It is not a matter of only ideas or concepts, the investors look to invest in you and your team and their ability to successfully execute your business plan.
A strong team
If you have a competent team, you have the attention of the investors. Show them that your team is intelligent, strategic, successful and follows strong financial discipline. Show them the qualifications of each member and what they bring to the business. Having a team that is knowledgeable, willing to learn and can handle multi-responsibilities are all positive traits that will impress your investors.
Experience
Experience can play a convincing role in winning over investors. If your team members have prior experience in their respective fields or have been involved with a startup in the past, it shows that you and your team have knowledge of your market and are tenacious enough to complete goals.
The investment structures
You should have a clear business structure in place that allows the investors to consider it and buy it. You should also plan for how the investment will work. In that plan, you must include, a clear valuation for your business and a stockholder’s agreement that clearly sets out the rights of all the owners.
Build your business with scalability in mind. Most investors expect a return on what they are investing. Therefore, scalability is a major factor for successful startups and a great attraction to investors. Basically, scaling is known as adding revenue at a rapid rate while adding resources incrementally. The amount of resources required doesn’t change as your customer base increases, driving consistent growth and improving profit margins. Therefore, the plan of your faster revenue, makes the investor consider your startup dearly.
Future vision and planning
Give your investors a picture of your potential startup, that is where your company will be in the future and make them optimistic that you have the credibility to achieve your goals. Plan along the lines of where is your startup going? How do you see your startup in the coming years? Do you plan for the worldwide market? Etc.
Conclusion
Attracting startup investors to your company is necessary for your business. Therefore, you must put all the pieces in place to show that partnering with your business would be a smart move for them. Highlight the best parts of your startup and discuss your challenges with them openly. Investors will get on board when you demonstrate your best.
Rajan Anandan is an Angel Investor and businessman who currently serves as the Managing Director of Sequoia Capital India. He was born in 1966 in Sri Lanka. After schooling, Anandan went abroad for his bachelor’s and master’s degrees in engineering and completed them at the Massachusetts Institute of Technology and Stanford University.
Rajan Anandan served as the top executive in big tech companies. Before Sequoia Capital Anandan was the Vice President at Google India and the SEA region, Managing Director at Microsoft India and Vice President at Dell India. He was also a partner at McKinsey for 11 years from 1992. His passion for technology and hard work have taken him to a higher position in globally acclaimed companies.
Besides being an executive and a businessman, Rajan Anandan is an active Angel Investor. In the last 13 years, he has made around 80 personal investments in multiple startups. This article covers the entire investment portfolio of Rajan Anandan over the years.
The following are the companies that have received funds from Rajan Anandan as an Angel Investor:
Smytten
Industry: Wellness and Beauty Care Investment Amount: $1.3 million (With Other Investors) Funding Round: Seed
Smytten – Rajan Anandan Funded Startups
Smytten is an online wellness and beauty care startup that offers some new and exhilarating shopping experiences for its customers. The company also offers a free trial of over 500 Indian and International brands along with some exciting benefits and discounts.
Smytten raised a funding of $15 million through a Series A round in May 2022. Earlier, Smytten received a Seed Fund of $1.3 million on April 11, 2016. Rajan Anandan along with a few other investors was a part of it.
InnovAccer
Industry: Healthcare Investment Amount: $2.5 million (With Other Investors) Funding Round: Seed
InnoAccer – Rajan Anandan Funded Startups
InnoAccer is a healthcare enterprise software company based in San Francisco. This platform curates and brings in all the information on healthcare and innovations in the industry and makes it accessible to everyone in need.
Through a Series E round held in December 2021, InnovAccer raised funding of $150 million from various investors. Rajan Anandan has also been one of the investors in InnovAccer during its Seed Round where it raised $2.5 million.
Indifi Technologies
Industry: Finance Lending Investment Amount: $18.8 million (With Other Investors) Funding Round: Venture Capital
Indifi Technologies – Rajan Anandan Funded Startups
A sum of $18.8 million was invested by the investors, including Rajan Anandan, in November 2021 through the Venture Capital round. Also, an undisclosed sum was invested by him in Indifi Technologies during the Seed Round.
WebEngage
Industry: Customer data and marketing automation Investment Amount: $100K (With Other Investors) Funding Round: Angel
WebEngage – Rajan Anandan Funded Startups
WebEngage is a B2C customer data and marketing automation platform that helps companies to boost their revenues. WebEngage assists companies to personalize their website & application and launching targeted campaigns.
This startup received debt funding of $930k from investors in October 2021. WebEngage also received an Angel Investmentof $100k from Rajan Anandan in October 2011
It is an online platform that offers store space for sellers to sell their products online. Instamojo integrates all the services like payments, marketing and shipping into its platform and offers simplified solutions. This company also offers online payment services for businesses.
Instamojo received an undisclosed amount through the Venture Capital round of funding held in June 2021. In May 2013 Instamojo managed to procure $500K as a Seed fund and an undisclosed amount during the Angel Round in July 2012. Anandan was a part of all the above investments.
Dunzo
Industry: E-Commerce Investment Amount: $3.7 million in 2020 and $650K in 2016 (With Other Investors) Funding Round: Series E and Seed
Dunzo – Rajan Anandan Funded Startups
Dunzo is an e-commerce platform that delivers groceries, food, meat, medicines, fruits and vegetables in big cities. It also offers pick-up and delivery services within cities.
Ranjan Anandan invested in Dunzo during its Series E funding in December 2020 and Seed funding in March 2016. The company received funding of $3.7 million and $650K in the respective rounds.
Omnify is an online platform that helps businesses with booking and scheduling solutions in their day-to-day operation. This cloud-based platform also supports businesses with CRM, billing, staff and payment management.
Omnify went through two rounds of Seed Funding in which Anandan has invested. The first round of funding took place in April 2017 and the amount secured was $150K. In October 2020 Omnify went through the second round of funding and the amount remains undisclosed.
Industry: Software Development and AI Investment Amount: $2 million (With Other Investors) Funding Round: Seed
NAYAN – Rajan Anandan Funded Startups
NAYAN is a visual search engine that uses AI-powered software to find details on visuals and images. This platform offers a real-time search facility that can be used to find anything in the public domain. This company received a Seed Fundingof $2 million in January 2020.
AskSid is an e-commerce site that uses AI to offer conversational solutions to customers and deliver a seamless shopping experience for them. This company was acquired by GupShup in April 2022. Rajan Anandan along with Krishnakumar Natarajan invested an undisclosed amount in AskSid during its Angel Round in October 2020.
PlusPin Healthcare partners with pharmacists, clinics, diagnostic centres and doctors to provide affordable healthcare services to people. It guides people with authentic and appropriate medical support in times of need.
Rajan Anandan invested $675K in PlusPin Healthcare along with a few other investors. The company raised this fund through Seed Round.
Freshtohome
Industry: E-Commerce Investment Amount: $11 million (With Other Investors) Funding Round: Series A
Freshtohome – Rajan Anandan Funded Startups
Freshtohome is an online platform that sells fresh fish, meat and chicken online and delivers it to customers’ doorstep at their convenient time. Freshtohome services are available in major cities. The company claims to sell only chemical-free and antibiotic-free fish and meat through its online store.
Freshtohome managed to procure $11 million in its Series A round of funding. Rajan Anandan has participated in Freshtohome’s Venture and Series A funding rounds.
StyleDotMe is an Augmented Reality fashion platform that enhances the jewellery shopping experience of users. This SaaS platform uses MirrAR software that helps users to view themselves in different jewellery and share them on social media.
On May 5, 2019, StyleDotMe received an undisclosed amount as Seed Fund from Rajan Anandan and other investors.
simsim
Industry: E-Commerce Investment Amount: $1.3 million (With Other Investors) Funding Round: Seed
simsim – Rajan Anandan Funded Startups
It is a platform that connects customers with local suppliers and sellers. simsim posts expert review videos on products and sellers. This helps the customers to know their quality. This startup also offers product recommendations in fashion, beauty, kitchen appliances and many more areas.
Rajan Anandan participated in the Seed Funding round of simsim where the startup raised $1.3 million. He later made an exit from the company.
Codejudge
Industry: Software Development Investment Amount: Undisclosed Funding Round: Pre-Seed
Codejudge – Rajan Anandan Funded Startups
Codejudge makes the process of hiring easy and valuable in the tech industry. It uses real-world projects to determine the skills of the developer. This platform simulates and automates the hiring process and helps identify the right person for the team.
Codejudge received an undisclosed amount from the Pre-Seed round of funding in January 2019.
Signzy
Industry: Software Investment Amount: $3.6 million (With Other Investors) Funding Round: Series A
Signzy – Rajan Anandan Funded Startups
Signzy is a software platform that provides AI-powered solutions to banks and other financial institutions. It helps the banks improve their speed and accuracy in dealing with customers and day-to-day operations.
Signzy obtained a $3.6 million fund on November 20, 2018, through a Series A funding round.
Trell
Industry: E-commerce Investment Amount: $1.3 Million (With Other Investors) Funding Round: Pre-Seed
Trell – Rajan Anandan Funded Startups
Trell is a social platform where users can create video reviews on various products and services in categories like fashion, technology, gadgets, movies, etc., This startup allows users to create reviews in 10 Indian languages.
GamingMonk is an eSports gaming platform that conducts online competitive games and events among the gaming community. The company offers its games both online and offline and they can be played either on mobile phones, PC or consoles.
GamingMonk collected $514K through Seed Round. After investing in a seed round, Rajan Anandan exited the company.
PregBuddy is a SaaS platform that serves as a connecting element between hospitals or doctors and expecting mothers. This AI-based software keeps track of mothers’ medical needs and assists them with required healthcare tips.
PregBuddy has been recognized by companies like Google and Apple. Anandan invested an undisclosed amount in the Seed Funding of PregBuddy in April 2018.
Buttercups was an online lingerie platform that used to sell its products exclusively on its online platforms. Unfortunately in 2019, its founder announced that she is closing her company for unsaid reasons.
Rajan Anandan funded Buttercups early in 2018 during its Venture Round. The amount of the investment remains undisclosed.
Industry: Cyber Security Investment Amount: $2.2 million (With Other Investors) Funding Round: Seed
Safe Security – Rajan Anandan Funded Startups
Safe Security is a cyber risk management company that offers assistance and evaluation on cybersecurity and digital business risks. The company claims it as the global leader in its field of operation and a pioneer in cyber risk quantification.
Rajan Anandan along with a few other investors offered $2.2 million to Safe Security during its Seed Round.
myUpchar is a wellness and healthcare platform that offers online medical support from experienced healthcare experts for a small fee. It offers expert solutions for all problems and doubts related to health.
myUpchar received $257K as a Seed Fund from various investors in September 2017.
Inclov is a SaaS platform that is involved in the business of match-making for differently-abled people. It is the world’s first online platform to offer such a service. The company was established in January 2016 in Mumbai.
Funding for the Seed Round took place in September 2017 when Inclov managed to secure $257K from investors.
EasyGov
Industry: Government Investment Amount: Undisclosed Funding Round: Angel
EasyGov – Rajan Anandan Funded Startups
EasyGov is an AI-powered startup that was established to develop an interface between the government and the citizens. The main goal of EasyGov is to take government plans and schemes more accessible and understandable to the people of our country.
The company received an undisclosed amount as an Angel Investment from various investors including Rajan Anandan. He later revoked his investment and exited from EasyGov.
With an aim of supporting farmers, Crofarm functions as a supply chain platform that procures fresh farm products at the right price from producers. These products are then sold to both online and offline retailers. Crofarm received $748K as Seed Fund on August 15, 2017, from various investors.
Monsoon Credit Tech – Rajan Anandan Funded Startups
Monsoon Credit Tech is a fintech startup that works with various banks and financial institutions to help them with money lending. This SaaS platform uses AI-powered software to analyze client data and approve lending options. This company through its Angel Investment round received an undisclosed amount in July 2017.
Karza Technologies – Rajan Anandan Funded Startups
Karza Technologies is another SaaS platform that works with banks to secure loans for its customers. It also helps to avoid loan fraud and data theft from such financial institutions.
Karza Technologies received a Seed Funding of $388K from investors. Later, Rajan Anadanan exited the company for some reasons.
Innov8 Coworking
Industry: Co-working Space Investment Amount: Undisclosed Funding Round: Pre-Seed
Innov8 – Rajan Anandan Funded Startups
Innov8 provides workspaces for business and professional people that enable them to work together with their community. The company’s beautiful workspaces are now available in around five cities.
Innov8 went through a Pre-Seed round of funding where it received an undisclosed amount from investors. Rajan Anandan exited the company after a few years.
Wishberry is a crowdfunding platform that was designed to help creators and artists in securing funds to empower their work. Its main aim is to inspire and encourage creative ideas and activities.
Rajan Anandan invested in Wishberry during its Seed Round in January 2017. The amount of this investment remains undisclosed. Whereas, the amount received through another Seed Round in October 2014 was $652.7K.
Tinychef
Industry: AI and Cooking Investment Amount: $352.6K (With Other Investors) Funding Round: Angel
Tinychef – Rajan Anandan Funded Startups
Tinychef is a culinary platform that offers curated recipes and content based on one’s taste and preference. It is an AI-powered voice recognition software that helps its users turn a home cook with some amazing and delicious food recipes.
Rajan Anandan made both personal and partnered investments in Tinychef. The personal investment was during its Angel Round when the company raised $352.6K. later in 2018, Anandan partnered with Swamy Kotagiri to invest $540.8K in the company.
Rapido started with an innovative idea of bike taxis in India. With their unique concept and adverse marketing strategy, Rapido became quite popular among people. Rapido operates in over 100 cities in the country.
Rapido on October 19, 2016, received an undisclosed amount as a fund from investors through a Seed Round.
Maya
Industry: Women Healthcare Investment Amount: Undisclosed Funding Round: Angel
Maya – Rajan Anandan Funded Startups
Maya is a health tracker app that keeps track of women’s menstrual cycles through a mobile app. This company was earlier known as Plackal Love Cycles.
Maya went through the Angel Round of funding and procured an undisclosed amount from Rajan Anandan and other investors. He later made an exit from the company.
Fulfil.IO helps online retailers with managing and automating their operations and focusing on customer experience and marketing. It helps the businesses in managing orders, finance, inventory, warehouse and many more
Fulfil.IO is another startup that has kept information on its Seed Round undisclosed hence, the amount of investment remains unknown. Anandan was a part of that particular round.
Leflair is an e-commerce platform that sells products on fashion, beauty and furnishings. This Vietnam-based company also sells products from over 2300 luxury brands. Leflair made $750K in its Seed Round held on May 31, 2016. Anandan later revoked his investment and left the company.
Unacademy has become a household name in India. It is an e-learning platform that offers numerous learning aids and lectures on diverse areas of education. It was started with the motto of giving a better learning experience for the students in the country.
HashLearn is another e-learning app that tutors students with content based on actions. It makes learning fun and interesting. This company was acquired by Byju’s in 2021.
HashLearn went through a Venture Round of funding and secured an undisclosed amount in March 2016. Anandan exited the company in its later stage.
Smartcooky
Industry: Media & Entertainment Investment Amount: Undisclosed Funding Round: Angel
Smartcooky – Rajan Anandan Funded Startups
Smartcooky is a venture of NDTV that was established to sell healthy foods and personal care products. It also publishes articles and information on food and health regularly. But NDTV shut the company in 2017 without giving any formal reasons for its closure.
During its Angel Round, Rajan Anandan invested an undisclosed amount in Smartcooky.
AppVirality is a referral marketing SaaS company that customizes, analyzes and automates customer referral activities. This helps the businesses to pitch their growth plan on the right path.
AppVirality received $500K as a Seed Fund from investors. This funding happened during the third quarter of 2015. This startup went through another round of Seed Funding in early 2015 when it collected $465K from Anandan and a few others.
Zenatix is a venture of Hero Electronix that was established in 2013. It is an asset management company based on IoT. Zenatix provides infrastructural solutions for construction that helps to minimize energy consumption and increase and maintain the structure’s life.
A Seed Fund of $200K was received by Zenatix from investors in 2015. However, Rajan Anandan exited the startup later.
Little Black Book
Industry: Events and Lifestyle Investment Amount: $150K (With Other Investors) Funding Round: Seed
Little Black Book – Rajan Anandan Funded Startups
Little Black Book is a site that helps to identify the best and most recommended products, places, local experiences, destinations and many more.
Little Black Book procured $150K from investors during its Seed Round of funding.
Mypoolin is an online payment application that helps users to send and receive money using UPI. The company was started with the main goal to provide simple and convenient solutions for payment-related activities.
Anandan left the company and took back his support for unsaid reasons. Before exiting Mypoolin he invested in the company’s Seed Round.
Dazo is a food startup that enables its customers to look for and order their food from the restaurants of their interest within seconds of opening its app. The company partnered with a few hotels to provide this service. But within a year of its inception, Dazo was forced to shut down due to a lack of funds.
Rajan Anandan invested in this startup during its Seed Round. Dazo managed to procure $236.6K from investors during its initial days.
Mapmygenome
Industry: Healthcare Investment Amount: $1.5 million (With Other Investors) Funding Round: Angel
Mapmygenome – Rajan Anandan Funded Startups
Mapmygenome is a diagnostic company that offers solutions to health issues based on genetic tests. It combines the genetic test results with the health history of the patient to arrive at a better solution for the problem.
Mapmygenome collected $1.5 million from our Angel Investor and others during its Seed Round.
InstaLively
Industry: Video Streaming Investment Amount: $120K (With Other Investors) Funding Round: Seed
InstaLively – Rajan Anandan Funded Startups
InstaLively is a platform to broadcast LIVE events with easy and simple procedures. This software also links the live stream to your Youtube channel directly. InstaLively was later acquired by Hike Messenger in 2017.
InstaLively made an amount of $120K in its Seed Round which was held on March 2, 2015.
ZipGo
Industry: Transportation Investment Amount: $3 Million (With Other Investors) Funding Round: Seed
ZipGo – Rajan Anandan Funded Startups
ZipGo is a commute service that is available only for members and reservors. Regular commuters can book a seat in this on-demand AC bus service using the ZipGo app. It offers its services between many cities and states.
The company attracted investors with its innovative ideas and received a sum of $3 million in the Seed Round itself.
GiftCardsIndia carries numerous ideas for gifts for all the occasions. It also offers gift cards and gift vouchers with fantastic designs and exciting prices. This startup is a one-stop shop for our gifting needs.
In the Venture Round of funding that was held on November 11, 2014, this startup received an undisclosed amount as an investment.
POPxo
Industry: Health & Lifestyle Investment Amount: $500K (With Other Investors) Funding Round: Angel
POPxo – Rajan Anandan Funded Startups
POPxo is a hangout space exclusively for women where they talk and share anything of their choice. It operates in a wide variety of categories like fashion, food, travel, lifestyle, fitness, etc., POPxo is now available in 6 languages. POPxo procured $500K from investors during the Angel Round.
Socialblood Inc
Industry: Healthcare, Social Media Investment Amount: $96.5K (With Other Investors) Funding Round: Seed
Socialblood – Rajan Anandan Funded Startups
Socialblood is an online platform that was designed to bring together blood donors and the people in need of blood. Facebook serves as its major operation base which makes it easier for the startup to bring in more donors.
Sociablood went through two rounds of Seed Funding and received $36.5K and $60K in them. Rajan Anandan invested in both rounds.
SocialCops
Industry: Information Technology Investment Amount: $320K (With Other Investors) Funding Round: Seed
SocialCops – Rajan Anandan Funded Startups
SocialCops is a data intelligence company that has partnered with various organizations and governments to collect and publish data. These data, in turn, are used to make crucial decisions and future assessments.
In the Seed Round held in July 2014, SocialCops managed to receive a fund of $320K from investors.
LetsVenture is a company that acts as a support system for startups. It helps the new ventures raise investors’ money by finding the right source with possible means. LetsVenture has grown to become a trusted source among investors.
Rajan Anandan participated in the Seed Round of LetsVenture and became a part of the total investment of $650K.
Ciafo is a software company that is involved in the creation of software based on customer needs. In simple terms, this startup is involved in the business of web-based consumer products. Ciafo was funded with $245K during its Angel Round.
Avaz
Industry: Software, Language Learning Investment Amount: $550K (With Other Investors) Funding Round: Seed
Avaz – Rajan Anandan Funded Startups
Avaz is a company that develops software named ‘Awaz’ to help people with speech disabilities. This tool gives voice to people with autism and helps them communicate their thoughts. A sum of $550K was invested in Avaz as a part of its Seed Round held in April 2014.
Frrole is a consumer intelligence platform that gathers and analyzes customer data to give business owners, sales persons, or hirers market insights. Similar to Ciafo, Frrole was given $245K from Anandan and other investors during the Angel Round.
Threadsol
Industry: Business Intelligence, Fashion Investment Amount: $200K (With Other Investors) Funding Round: Seed
Threadsol – Rajan Anandan Funded Startups
Threadsol is software that helps manufacturers in planning and buying fabrics for their production. It reduces time and makes the process seamless using its innovative technology. The company Coats acquired Threadsol in December 2018.
In the Seed Round that happened in 2014, Threadsol received an investment of $200K from investors. Rajan Anandan made no further investment in the company and also revoked his initial investment made during the Seed Round.
TravelKhana
Industry: Food Delivery Investment Amount: $2 million (With Other Investors) Funding Round: Seed
TravelKhana – Rajan Anandan Funded Startups
TravelKhana is a food delivery app but on a train. The food gets delivered to your seat on time when ordered. This app can track trains in real-time to make on-time food deliveries. A whopping sum of $2 million was pumped into TravelKhana by Rajana Anandan and other investors as a part of its Seed Round.
Airwoot is a customer support platform that offers real-time support to customers in need of assistance. Its intelligent customer experience software automatically identifies the customers in need and helps businesses conserve time. Airwoot received an undisclosed amount from investors during its Angel Round in August 2013. Anandan later left the company and took back his investment. The reason for his exit remains unknown.
Designed as the functional programming language, transforming data is the major purpose of Dataweave. It also helps to analyze public data in a uniform format on the web. On April 25, 2013, Dataweave received a Seed Fund of $270K from multiple investors for developing its business.
Lumos Design Technology – Rajan Anandan Funded Startups
Lumos Design Technology was established with a motto to make cycling and cyclists safer with the use of modern technologies. It manufactures backpacks, solar chargers and other consumer electronics that are used for traveling. A sum of $32K was offered to Lumos Design Technology by Anandan and others during the Angel Round.
Industry: Digital Marketing Investment Amount: $4 million (With Other Investors) Funding Round: Series A
Mobilewalla – Rajan Anandan Funded Startups
Mobilewalla is a consumer intelligence platform that provides solutions for companies, brands and agencies. It is a Singapore-based company founded in March 2011. It analyzes consumer data with AI to arrive at a perfect result.
Mobilewalla received a huge sum of $4 million from a Series A funding round that was held in February 2013.
Myshaadi.in is an online startup that offers wedding-related services. It helps people with profile personalization and finds the best wedding partner for their life. Myshaadi.in received an undisclosed amount from angel investors like Rajan Anandan and others during the Angel Round held in April 2012.
Aurality is a software developed by Aurality Technologies Pvt Ltd. This platform helps people convert texts from blogs, articles, and news sites into audio format quickly and easily. Aurality received $300K from investors as a Seed Fund.
Reach Accountant offers the best service that can replace the accountant in one’s office. It performs the daily and monthly accounting services that an office requires. The data are stored online, hence it becomes accessible anywhere anytime. The fund received by Reach Accountant from investors during its Angel Round was not revealed by the company.
MissMalini Entertainment
Industry: Media and Entertainment Investment Amount: Undisclosed Funding Round: Angel
MissMalini Entertainment – Rajan Anandan Funded Startups
Rajan Anandan exited the company after investing an undisclosed amount during its Angel Round of funding.
authorSTREAM.com
Industry: Software Investment Amount: $5 million (With Other Investors) Funding Round: Series A
authorSTREAM – Rajan Anandan Funded Startups
authorSTREAM is a web platform that allows users to upload and share PowerPoint presentations. The presentations can be shared through Youtube, blogs websites, etc., authorSTREAM received a whopping sum of $5 million from its Series A round held in December 2010.
Conclusion
The above are the startups that received funds from Rajan Anandan. Instead of focusing on the startup’s sector, Anandan gave importance to the founder’s vision, passion and clarity towards their business. He never failed to support a team with the said qualities. The number of investments he made shows his passion and love for startups and budding entrepreneurs.
FAQs
Who is Rajan Anandan?
Rajan Anandan is an Angel Investor and businessman who is the MD of Sequoia Capital India.
Which are the top startups funded by Rajan Anandan?
Some successful startups funded by Rajan Anandan are:
POPxo
Dunzo
Unacademy
GamingMonk
Trell
Rapido
Appknox
MissMalini Entertainment
LetsVenture
Smytten
InnovAccer
Indifi Technologies
What is the net worth of Rajan Anandan?
Rajan Anandan’s net worth is expected to be over $1 million.
India is now ranked third globally in terms of unicorns, with a number of 100 unicorns worth $332.7 billion as of May 5. While this is terrific news for unicorn startups in the future, we must remember the earlier startups and their founders who paved the path for them.
Rohit Bansal, who is given the title of “One of the Poster boys for startups in India” by Economic Times, has personally invested in over 52 startups, the most recent Recur Club, as part of their Seed VC on April 4, 2022. He is also the co-founder of one of India’s earliest unicorns in 2010.
Founded: 2018 Founder: Shashwat Diesh and Aqib Mohammed Industry: Female Wellness
Founded in 2018 by Shashwat Diesh and Aqib Mohammed, Azah is a Gurugram-based female wellness startup brand that makes chemical-free hygiene products for women. Snapdeal founders Kunal Bahl and Rohit Bansal invested an undisclosed amount in the organic wellness startup. The pre-series A funding round was led by Bansal’s firm Titan Capital.
The brand plans to use this funding to research and develop new products and expand its reach to newer demographics while exploring alternative channels to drive growth and acquisition. With the new funding, Azah also plans to reach out to Tier 2 and 3 cities like Patna, Kanpur, Chandigarh, and Dehradun.
By the end of the next quarter, Azah is planning to double its monthly revenue.
Sanfe
Founded: 2018 Founder: Archit Aggarwal and Harry Sehrawat Industry: Women’s Beauty, Skincare & Intimate hygiene care
Rohit Bansal invested Rs. 8 crores in Sanfe, a feminine hygiene company, through his investment firm. Intimate wipes, pain relief roll-ons, menstrual cups, urine devices, organic sanitary wipes, and more are among the products offered by the firm, which was created in 2018 by IIT Delhi grads Archit Aggarwal and Harry Sehrawat.
Sanfe products are sold in over 1,500 stores across the country, as well as on well-known e-commerce sites like Amazon, Flipkart, and Nykaa. It currently operates in global markets such as the United States and Nepal, with intentions to expand into other European and African regions in the future.
The brand plans to use these funds to strengthen its team, research and develop new products, category disruption and build its brand. Sanfe expects a 300 per cent increase in the Indian feminine hygiene market by the end of 2022, compared to the industry’s current growth rate of 21%.
JobSquare is an Ahmedabad-based recruitment platform that links recruiters and jobseekers in real-time. It already works with organizations like Reliance Jio, BookMyShow, Wipro, Larsen & Toubro Infotech, Urban Ladder, Alembic Pharmaceuticals, Urban Clap, Sodexo, and UpGrad.
The platform employs technology-based elements such as hyper-localized search, map listing, direct and non-paid messaging, mutual connections, and others to aid in the speedier implementation of processes.
It received a total of Rs. 1 crore in finance from Bansal’s firm, Titan Capital. The money will be used to improve production, launch new goods, expand sales operations in tier-II and III cities, and reinforce its position in existing markets, according to the startup. In addition, the company intends to expand into new international markets.
By the conclusion of the next quarter, the company hopes to have doubled its monthly revenue.
Founded: 2019 Founder: Iesh Dixit and Shubham Goyal Industry: Construction and Architecture Project Management
IIT Roorkee grads Dixit and Shubham Goyal founded the Bengaluru-based firm Powerplay in December 2019. Powerplay is a free mobile app that allows numerous construction project stakeholders to interact and collaborate. The app allows project managers, partners, and employees to keep track of progress, deliverables, and payments, as well as streamline project management operations.
Employee attendance, budgeting, and invoicing, as well as issues and material management, may all be tracked with the app. It’s designed to handle jobs of various sizes.
Powerplay’s Android and iOS-enabled app, which was launched in October 2020, is presently utilized by over 35,000 contractors in 800 Indian cities. Over 5,000 contracts have been managed through the app, with contractors allegedly saving over 200 hours per week.
Powerplay has raised Rs. 40 crores in a round-headed by Accel Partners and Sequoia Capital’s Surge accelerator program, of which Rohit Bansal was a prominent member.
According to Invest India, India’s construction industry is predicted to become the third-largest in the world by 2025, growing at a rate of 7.1% per year. In 2017, the sector was India’s second-largest employer, and it is presently the country’s second-largest FDI receiver in the current fiscal year.
Recur Club
Founded: 2021 Founder: Abhinav Sherwal and Eklavya Gupta Industry: FinTech
Recur Club, an innovative fintech platform facilitating non-dilutive growth financing for firms with recurring revenues, closed its Rs. 230 Crore seed investment round, which was a blend of equity and loan allocation.
It was founded in 2021 by two batchmates from IIM Calcutta, Abhinav Sherwal and Eklavya Gupta. This trading platform established in Singapore and New Delhi allows businesses to trade future customer revenue at a little discount in exchange for money within 48 hours against current recurring revenue.
It integrates with a customer’s accounting, invoicing, and subscription management systems to examine critical parameters. It then decides if the company is eligible to trade in real-time.
Recur Club provides an alternative financing platform that complements VC capital and delivers a quick turnaround with attractive rates while also providing a new asset class for investors seeking fixed income yields as the number of recurring revenue companies, notably SaaS, grows rapidly.
Recur Club intends to use the money raised to accelerate its growth by providing best-in-class product experiences and expanding its sales and engineering teams, with the goal of becoming “the largest and most accurate financial metrics benchmark for recurring revenue businesses.”
Conclusion
For a long time, Rohit Bansal has been one of the most notable angel investors. In 2021, the co-founder of Snapdeal had invested in over 91 startups through his investment venture Titan Capital. Apart from being an angel investor, he is also the Co-founder and current Executive Director of the infamous online e-commerce site and now the second-largest e-commerce platform after Flipkart, Snapdeal.
FAQs
Who is Rohit Bansal?
Rohit Bansal is an entrepreneur and investor. He is a co-founder of Snapdeal.
What are the startup investment of Rohit Bansal?
Some Startups funded by Rohit Bansal are:
Azah
Sanfe
JobSquare
Powerplay
Recur Club
What is the salary of Rohit Bansal?
Rohit Bansal got an annual salary of INR3.5 crore in 2021.
What is Rohit Bansal’s education?
Rohit Bansal has completed his schooling from Delhi Public School and Graduation from IIT Delhi.
StartupTalkyinterviewed Kunal Chowdhry, Global Angel Investor to know about his investment mantras, investment methodology, and how he judges founders and startups to make an investment decision. Get insights into his journey of Investment in Startups.
Tell us about your background and how you got to where you are today. What keeps you motivated at whatever you do?
I was born in India and spent the formative years of my life in Singapore. I graduated from the University of Cambridge and returned to Singapore after completing my MBA at Harvard University. I have worked in both consulting and the financial services industries and now run Apollo Singapore Investments, a multi-asset-oriented family office. Apollo invests in a range of different asset classes including startups in India and South-East Asia, particularly SaaS companies in the areas of HR Technology and Blockchain.
I come from an entrepreneurial family, with my father being one of the founders of the HCL group so I have lived and breathed the ups and downs of an entrepreneurial journey since I was young with exposure to new technologies as they were being developed.
I am married with three kids – a girl and two boys. I love keeping abreast of new trends and enjoy interacting with young people because they generally have their pulse on the ground and are able to offer a fresh perspective. Keeping this in mind, I believe in a mentorship-based model of investment, whereby I make mentoring a key component of my investment methodology. I also mentor University kids from the perspective of both career and life advice and I have to say that I find them very inspiring. The desire to constantly learn and refresh myself intellectually is what truly motivates me. For example, I spent the first year of the pandemic educating myself about crypto, an area I knew nothing about previously. I am inspired by a number of entrepreneurs who started companies in areas of business they knew nothing about but were able to learn on the job and ended up creating products and services that changed the world. You don’t have to look beyond Elon Musk as an example of such a visionary.
I am passionate about travelling and collecting art. My wife and I have travelled to almost 45 countries and we usually pick up art pieces/souvenirs which are representative of the country. One of my favourite pieces is a small statue made of lapis lazuli, which is emblematic of the large statues on Easter Island, Chile. I also love tennis and you can usually find me at a Grand Slam tournament with my daughter as she is also a fan of the sport. Thanks to my kids, I am also a big fan of K-pop and have seen BTS, EXO and Blackpink in concert!
How did you start your professional journey and what do you do now?
I started my career as a consultant with Accenture in London and even spent a year in Spain which has been one of the highlights of my life thus far! I love Madrid and even learned Spanish during my time there as my entire team was Spanish and I had no choice!! After graduating from Harvard, I moved to Singapore to work directly for the CEO of DBS Bank on special projects in Singapore and around South-East Asia.
I now run my family office from Singapore. As a full-time investor, I am responsible for obtaining good returns from all our investments across a range of asset classes and geographies. This allows me to take a macro view. It feels great doing what I do because I simply love to join the dots between macro events, politics and their impact on investing.
Share any story on a tough day at work and how you pushed through.
A tough day for me would be waking up to see that my portfolio returns have dropped significantly due to a major market event. I am currently living through this as we speak, as the combination of war in Ukraine, high inflation globally and monetary tightening by central banks globally has made things really tenuous from the point of view of an investor.
The one and the only thing to do in such a situation is to stay calm. It’s important as an investor to plan for contingencies but you can’t always plan for ‘black swan’ events such as Covid. While it’s important to stick to a plan, it is also imperative to be able to pivot should the key assumptions underlying your strategy turns out to be invalid in a new market scenario.
If one day I wake up and be you, what are the things that I will do?
If you were to one day wake up and be me, you might have a bit of a shock as I am usually woken up by 3 large Labradors every morning who seem to know when my alarm is just about to go off! I generally wake up at 7 am to see my kids off the school. I spend the next several hours reviewing global news and responding to emails and reviewing business pitches and investor updates. I work out at least 3-4 times a week before lunch and generally schedule meetings post-lunch until early evening. I tend not to work between 7-9 PM as I eat dinner with my family and enjoy putting my kids down to bed. Post-dinner, I spend a couple of hours on calls with Europe/US before unwinding by watching Netflix before bed!
How and when did you start your Investing Journey?
I am passionate about startups, given my entrepreneurial upbringing and always knew that I would be part of the startup ecosystem. I have worked as an intern in start-ups while I was an undergrad in the UK and also during my MBA in the US but I always felt that my forte lay in investing. I have been an angel investor since my late 20s so almost 15 years now! When the Indian Angel network was first founded, I had the opportunity to join and it ended up becoming my first exposure to the world of startup investing. Since then, I have invested in close to 50 start-ups in India and South-East Asia. I am always on the lookout for new business opportunities and most recently invested in a coffee cart business in London.
What kind of startup do you invest in? Are you a sector or geographic agnostic? What is your typical investment horizon, return expectation, and timeline?
I am always on the lookout for that one idea than fulfils the need of any big community as a whole. An idea that can better the lives of many because of its practicality or its use. I primarily focus on HR tech and blockchain start-ups. However, that said, I also invest in other industries such as FinTech, Consumer retail, Internet, and deep-tech analytics. My typical investment horizon would be 5-7 years. My return expectation is to always aim for 3-4 times my initial investment but that’s easier said than done as an early-stage seed investor!
What is your investment mantra? Please share the metrics you track and why those are key according to you. What do you look for in a founder?
My investment mantra is simple – know the founders’ purpose and understand their motivations. Also, it matters to me whether the business philosophy can be easily explained to any layperson. As such, I don’t tend to invest in overly complicated businesses such as biotech as I don’t have a background in this industry. I would, however, not be opposed to investing in a biotech fund, run by experts who understand the space well.
I have five metrics that I usually go by:
customer growth
top-line revenue
core operating expenses/cash burn
runway
alignment with the founders’ strategic vision.
What and how do you judge the Founding team before writing a cheque? What are the key challenges you face as an investor before you sign the cheque?
I love founders who are confident, focused, clear, strategic, and yet versatile enough to turn things around or pivot when their ideas are not working. Not just the founders, but the founding team is also very important. I look at the entire team to examine the competencies of senior leadership. As such, I always insist on meeting not just the founder but also the entire team before making any investment decision.
What are a few signs which make you trust a founder and find him/her Competent? What are the signs? How much does a degree from Tier I college matter?
Education is not as important as vision. Education definitely opens the door, but at the end of the day, it’s the founder’ innate strengths and vision which carry the day.
I love founders who put their own money into their start-ups, no matter how small the amount is. This shows that the founders believe in themselves, which is a key criterion for success in my book!
What is a warning sign for you when investing in a startup?
Some red flags would be inflated expectations of performance without evidence to back it up. For example, a financial projection of $100M in revenue by Year 3 when the company is making $100,000 in Y1! And yes, I have seen many pitches with these numbers!
I believe in a mentorship-based model of investment, where I meet with the founding team on a monthly basis to review key metrics and discuss strategic decisions. I have often been asked to help vet potential candidates for senior leadership positions in some of my portfolio companies. Also, I have developed a strong network over my two decades of professional experience so I am able to make connections and warm introductions to other investors, potential customers or even potential partners in other markets.
Please share a couple of learnings which make your professional life easy and productive.
Learning from experience, I find things are easier if we just go directly to the top and not waste time with middle management. For example, earlier in my career, I would try and connect to someone at my level in a company so as to “not go over anyone’s head”. However, I have since found out that decisions are rarely taken by anyone in middle management and sometimes the message just gets lost in translation.
This is especially relevant in the Asian context, where words from senior management carry more weight and gain more attention. If you can get a message sent down by the CEO, you’d be amazed how quickly action is taken!
Another life hack which I learned a long time ago is to just ask because the worst that can happen is that you will be told “no”. But if you never ask, the answer will always be “no”. I learned this as a teenager whenever I would ask the check-in manager at the airport for an upgrade from economy to business class. Most of the time it wouldn’t work, but I did end up having a success ratio of almost 20% which is pretty good, especially as one of them was on a 17-hour flight from Santiago to London! This is equally valid in the business world. e.g. asking for more time to pay or asking for an additional discount.
When do you think it is the right time to raise investment for a startup?
In my experience, the fund-raising runway takes about 6 to 9 months. The best time to raise funds is when you have at least one year’s of runway left. In my opinion, if you leave it too close, you may end up securing financing at too high a cost – in terms of interest, equity or even loss of control of your company.
How can we support/ enable entrepreneurs in Tier II and Tier III cities?
We are seeing more and more startups from Tier II/III cities but they need the right platform to showcase their capabilities. We can tap into our collective networks and link them up to investors, customers and markets not just in India, but across the world.
Some specific actions that can be taken include:
Mentoring the founders thereby enabling them to better their businesses
What are the things that can help the founder retain maximum equity while negotiating with an investor?
I would suggest that in the early stages, particularly for seed rounds, founders should take investments in the form of convertible notes, rather than direct equity. This ensures that founders retain control for as long as possible, as usually in the later stages of funding, founders would have to give up a percentage of their equity stake.
What is one thing you wish Indian founders and VCs understand which will make the Indian startup ecosystem a much better place for startups?
I have seen inflated valuations in the ecosystem for some time, particularly in the last 5 years. Founders’ valuation expectations have become unrealistic. They are too eager to have a $ 20 million valuation based on 4 pages of a PowerPoint deck but there are insufficient revenue and customer numbers to back the valuation. I am of course referring to brand new startups which sometimes don’t even have an MVP (Minimal Viable Product) yet are asking for a $20 Million valuation!
One learning that you would like to share with founders who are looking to raise funds?
Raising funds in an economically volatile market is challenging. Investors are more cautious with where they put their funds and usually impose more stringent terms and conditions, compared to a bull market where financing is more readily available with fewer strings attached. Adverse economic conditions will have an impact on fund-raising initiatives. It not only takes longer but also entails several rounds of negotiations.
What are a few sectors you think would be hot in the upcoming year?
Web3 incorporating Metaverse, gaming and blockchain are some interesting sectors not only for the upcoming year but also for the next 3-5 years.
How do you keep track of what you have to do? What are you currently reading, or what do you recommend?
I like to stay abreast of current events because they provide crucial information for all my investment decisions. I read not only more traditional publications such as The Wall Street Journal, Financial Times and the Economist but also spend a lot of time on Twitter as it gives me access to information across a range of my areas of interest – from crypto analyst research to movie box office numbers, from macro data on the economy to the latest events in sports. I truly believe that the world of investing is very interconnected with lessons that can be drawn from a range of industries. And sometimes, it’s fascinating to realise that hype doesn’t always result in good business performance. Take a look at Netflix for example – just 8 months ago or so, everyone was talking about the TV show “Squid Game” and how it was proof that Netflix’s high-cost content acquisition strategy was working. But here we are a few months later and the share price is down 70%.
The article is contributed by Mitesh Shah, Co-Founder, Inflection Point Ventures.
Start-up investing is an emerging and rewarding asset class. While many people are now starting to consider investing in startups, the initial journey can seem daunting and hard to navigate.
If you are someone who is looking to kickstart your angel investing journey, here are some tips that could help:
Tips for First-Time Investors
Develop a personal investment thesis
As an angel investor, you should work with a personal investment thesis. This thesis will help you identify the sectors and the kind of startups you would want to invest in. In this thesis, try to cover the following topics:
A range on how much you are willing to invest in startups.
What is your focus – impact generation or seeking substantial returns.
Identify sectors you are not comfortable investing in. For example, many angel investors who don’t support tobacco or alcohol consumption, do not invest in start-ups in those sectors.
Do your research and think about it from the perspective of building a portfolio
Once you have made up your mind about start-up investing, the first thing is to do is identify the right startups. Like most investments, it is imperative to do thorough research before investing in a startup. You can begin with identifying certain sectors that interest you or you can choose to be sector agnostic, but what is imperative is that you develop an understanding of the business, team and market before investing.
Target opportunities that are scalable
When looking for successful ideas to invest in, scalability becomes an important parameter to look at. Understand how large a problem they are solving; how many people will be able to adapt and benefit from the solution, what is their total addressable market size, how is the larger industry growing, etc.
Deep dive into the team
A startup idea is only as strong as the team that is going to execute it. So, when you come across an idea that excites you, gather confidence in not the founder/s but also the team at large. And how the founders plan to expand this team and hire good resources. At times people consider good pedigree – an IIT/IIM degree to be a good enough indicator of the founder’s abilities; this although might not be the best parameter at times so you may avoid following that convention.
If it’s a tech-driven business do your tech research and validation rigorously. If needed, seek advice from experts. Pay close attention to how they aim to build that tech and the timelines they are working with.
Don’t judge founders by their past failures
Don’t go in with biases. Failed entrepreneurs come with a great degree for experience and understating of “what not to do”. Research suggests the learning process of opening and closing a business increases the chances of success.
To begin your angel investing journey, it may be beneficial to start with industries and sectors that you are already familiar with or have some experience in. It positions you to better evaluate the start-ups when you are just starting out.
Invest your time, knowledge and connects
It ties into the previous point about investing in sectors you are familiar with because angel investing is about a lot more than just investing money. As an angel you can bring to the table your experience and expertise that’ll help the start-up grow. At early stages, guidance and connects are as important to a start-up as money is.
Invest with others/ Seek advice from others
Start-up investing is a risky asset class, and when you are just starting out, it might be difficult to get everything right on your own. Try investing with other investors, either through privately formed niche groups or through angel investing platforms. Other like-minded angel investors will not only help you evaluate your investment decisions but also help you learn more about the ecosystem and further identify potential investment opportunities.
Be prepared to invest for a long term
As an angel investor you will most likely invest in a start-up at a very early stage. At times startups can take some time to reach a scale wherein you get substantial returns on your investment. So be prepared to have the money invested into the startup for a long time and be patient till the start-up reaches its full potential.
Consider your exit opportunities at the time of investing
While making a decision to invest, it is also important to consider what your potential exit options will be. There are multiple ways to get an exit – follow-on rounds by VCs, M&As, IPOs etc. Undeniably, at the end of the day, your success as an angel investor is defined by the returns you are able to generate and the experience you have gathered.
Paperwork and legalities
A term-sheet defines the framework of your investment agreement with the startup. While it is a non-binding document, it is still important to make sure you have carefully considered all the terms mentioned in it. You need to know that you have the right to negotiate the terms if they don’t suit you. In the beginning, it is advised to take inputs from more seasoned investors or SMEs (Subject Matter Experts) when negotiating the terms. The important points to consider in the term-sheet are:
Valuation of a company & ownership percentages
Investor Rights
Payment of Dividend
Liquidation Preference
Types of Shares offered
Dilution/Anti-Dilution
Then comes the SHA – Share Holder’s Agreement. SHA is a legally binding document upon the investor and the company, and a precisely drawn term-sheet would help ensure that there are no sudden disturbances due to miscommunication while signing the SHA.
Conclusion
Overall, while navigating start-up investing can seem difficult in the beginning, access to right information and a like-minded community of investors can definitely make it an enriching journey. Joining an angel investment platform can help you get access to good startups, diverse network of experienced investors and help with legal documentation. This will enable you focus your time and attention towards finding the right startups for your portfolio, where you can contribute not only dry powder, but your time and professional experience as well.
Indian Startup Ecosystem is growing hugely. India stands third in global start-up ecosystem. With the changing trends in the Indian startup ecosystem, investors are getting attracted towards investing in startups. We founder Circle is a startup that provides investment service to help early stage startups.
Here is excerpt of the interview with Mr. Neeraj Tyagi, CEO & Co-founder of We Founder Circle (WFC) about Indian startup ecosystem.
Tell us briefly about yourself?
We Founder Circle (WFC), a founders-led early stage startup investment platform born in the midst of the pandemic, plans to invest in 70 start-ups in FY 2023. Since the launch in 2020, WFC has become one of the fastest-growing angel networks with 33+ startup investments in a span of 12 months. WFC has already facilitated funds worth $150 million across 33+ startups by the end of December 2021 and became the 2nd largest Angel Investor of the Country. Platform’s key investment includes Zypp, ObenEV, Lissun, Healthysure, Hesa, Glamyo Health, Geekster, YPay Card, EsportsXo and Settl.
In its first year of operation, We Founder Circle (WFC), a founder-led early-stage start-up investment platform, has successfully invested in 33+ start-ups spanning across 10 industries. Our community is strong by 2000 members that combines the extensive experience from angel investors, corporate leaders and unicorn founders. Our efforts were also recognized by the industry as we became #2 active Angel Investor Network in India. Our portfolio expanded to cover 10 sectors including EV, Agritech, Fintech, Edtech and D2C.
How often do you bet on the entrepreneurs and not on the ideas? And when/if you do that, what quality of the entrepreneur usually makes you do that?
An entrepreneur should be a high-energy, high-motivated individual. He or she should be on the move all of the time. At the same time, great degrees of commitment is required. A person can only do justice to his/her line of work if he/she is driven. Entrepreneurs are defined by their passion, resourcefulness, readiness to improvise and listen to others, and a strong desire to succeed.
What is a warning sign for you when investing in a startup?
1. Low quality products. Distinguishing oneself from the competition is a regular difficulty for any startup company. A company that is unable to deliver a high-quality or specialty product will most certainly be steamrolled by competitors that are already well-established.
2. Loss of vision. A good business plan detailing the targeted markets, as well as a vision statement stating how the market will be penetrated, are required for a company to survive.
3. A lack of progression. To thrive, a young firm needs rapid, yet scalable, growth. The reason is straightforward. There’s no guarantee that their loyal consumers will return the next day. It’s critical to seek out new ones as frequently as possible.
What are some common biases you find in the Indian Startup ecosystem?
Despite certain programmes aimed at promoting the growth of female entrepreneurs, there are still gender prejudices in the startup environment. Traditionally, India has shied away from professional risk and entrepreneurship. Though there has been a recent movement in young people’s attitudes, society still has a hard time accepting entrepreneurs. Instead of solving a consumer need with a fantastic product, the current generation is motivated to make money.
Failure is also looked down upon in today’s society. Being an entrepreneur is like sleeping on a bed of thorns in a country that despises hard work and failure. The majority of parents compel their children to work hard in order to acquire a stable career, and they view entrepreneurial efforts with suspicion. It is difficult to build a vibrant startup ecosystem in any country when the youth are not inspired to pursue their own companies.
What are your views on the SharkTankIndia Episodes until now?
We definitely think Shark Tank India is taking entrepreneurship to every Indian household and is making conversations around startups the new normal. The business reality show is giving a much needed boost to the burgeoning Indian startup ecosystem and comes across as a platform to transform dreams into reality for all the budding entrepreneurs.
We are seeing many startups exiting with IPO, what’s your opinion on that? How is it going to change the ecosystem?
Because of lockdowns and other safeguards, the Covid-19 epidemic has aided the technology startup sector by driving more transactions online.
Other factors include India having some of the world’s lowest data prices and an increase in smartphone ownership, which has allowed technological start-ups – many of which were created less than a decade ago – to reach a considerably broader audience. With a young population and internet penetration that is still well below its full potential, these businesses have a lot of room to develop.
Companies aim to use the capital from new proceeds to expand as demand in the post-pandemic world is predicted to increase by a factor of ten. Overall, this is a very encouraging indicator for the Indian economy’s future prospects.
More than 42 unicorns in 2021. What do you think caused this wave? Is the valuation justified according to you?
This year was a wonderful year for Indian businesses, with 42 achieving unicorn status. In 2021, more startups joined the club than in the previous five years combined. The record fundraising boom is projected to continue in the coming year, thanks to India’s increasing embrace of technology and new startup products. With only nine days left in the year, there’s a good chance we’ll see a few more surprises. It’s true that financing for 2021 is at an all-time high. The enormous number of unicorns, as well as a succession of successful IPOs, has piqued the curiosity of investors from all over the world.” I also credit India’s huge talent pool, quick technological adoption, and COVID-generated tailwinds for the increasing number of Indian enterprises making an impact on the global economy.
How can we support/ enable entrepreneurs in tier2 and tier 3 cities?
Close to 30% of our portfolio startups come from Tier 2-3 cities. We are big believers of ideas that are thought locally and aim to reach markets globally. In order to support these local entrepreneurs all we need is to build a strong startup ecosystem that offers co-working spaces, right mentors and angel investor networks, startup weekends and some business partnerships for these startups to grow.
What are a few sectors you think would be hot in the upcoming year?
For 2022, EV, Health Tech, D2C, Automobile Tech, Fintech, EdTech, Food Tech are going to be the hottest sectors. Keeping the same in mind, WFC is focused on start-ups in such sectors to help them grow.
One learning that you would like to share with founders who are looking to raise funds?
Always focus on your pitch and business model. Before approaching any investor, you should be thorough with the scope of your industry and start-up. The clearer your vision is, the better the impact on your investors.
Sayantan Mondal
