The Bestvantage Startup Meet in Mumbai recently provided an invaluable platform for exploring the evolving landscape of venture capital (VC) and startup investments. The discussion was particularly insightful for founders eager to understand what VCs prioritise as we head into 2025 and beyond.
The panel discussion started with a crucial question: What are venture capitalists focusing on today? The insights from various experts shed light on the factors shaping their investment decisions. Abhiram Bhalerao (Partner at V3 Venture), a prominent VC, shared an optimistic view despite recent global uncertainties. He emphasized that while short-term events might cause fluctuations, India’s long-term consumption story remains robust. The government's ongoing support for the startup ecosystem fuels positive sentiments. Abhiram highlighted that deal activity is increasing, indicating a revitalized investment environment.
Sipika Nigam (Co-Founder & CEO, ByondSeed India), who manages Indian operations, offered a perspective on the current market conditions. He pointed out that the recent elections have brought stability, which is favourable both domestically and internationally. Despite global economic challenges and geopolitical tensions, India’s attractiveness as an investment destination remains strong. Government initiatives to enhance manufacturing capabilities and promote sustainability were also noted as promising factors. Sipika emphasized that innovators should focus on practical applications to leverage these opportunities fully.
Apurva Kumar (Private Equity Specialist at Kitara Capital), known for investing in larger rounds, provided insights into Series A and B investments. Apurva observed that capital flow into India is healthy across various asset classes, with a particular focus on founding teams, profitability timelines, and unit economics. Apurva mentioned that sectors like energy drinks are experiencing rapid growth, but the long-term sustainability of these trends is crucial for sustained value. Apurva also discussed emerging areas of interest. Manufacturing, she noted, is gaining traction due to its role in GDP growth beyond services and consumption. Cloud technology and financial services, particularly wealth tech, are other sectors showing significant potential as financialization increases.
Abhiram highlighted several promising trends within the D2C sector. Premiumization, conscious consumption, and evolving consumer preferences are key areas to watch. He cited the energy drink segment and conscious consumption of food and beauty as growing trends. Additionally, manufacturing sectors such as footwear and electronics are poised for long-term growth, bolstered by government support and market potential. A critical point discussed was the importance of aligning with the right investors. Abhiram advised founders to be cautious about raising too much or too little money, as missteps in this area can lead to challenges. The current market emphasizes raising the right amount of capital and ensuring it aligns with long-term business goals.
When asked about the return of the 2021 funding environment, Apurva emphasized that today’s focus has shifted towards profitability rather than unchecked growth. Founders should have a clear plan to achieve profitability and seek investors committed to long-term capital. Sipika identified key traits of successful founders: close tracking of metrics, focus, and adaptability. Successful founders continually monitor their growth and make necessary adjustments, maintaining a strong focus on improvement. For D2C brands seeking funding, Abhiram advised ensuring that fundamental principles are solid. A strong product-market fit and robust unit economics are crucial. For those approaching Series A or B, Apurva emphasized clarity of thought, understanding of the product, and perseverance.
Finally, addressing a question from the audience about the international market potential for Indian D2C brands, Abhiram noted that while India is a significant market, several Indian brands have successfully expanded internationally. Brands like Organic India and Wadham are examples of companies generating substantial revenue outside India, demonstrating the potential for international success. The discussion at the Bestvantage Startup Meet highlighted key trends and considerations for startups and investors. As we look towards 2025, understanding these perspectives will be crucial for navigating the evolving landscape of venture capital and building successful businesses.
So, don't miss out on the opportunity to be part of India's startup revolution. Join us at Bestvantage Investments and embark on a rewarding journey of discovery, growth, and prosperity in the world's most dynamic startup ecosystem. Visit www.bestvantageinvestments.com for more such interesting opportunities, and visit https://www.bestvantageinvestments.com/event for our upcoming events.
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