Incubate Asia Fund has invested in many start-ups in the country across various industries ranging from healthcare, FMCG, electric vehicles and gaming among others. It was in 2014, Nao Murakami came to India from Japan and took a plunge in the entrepreneurial world with his own start-up. The first-hand experience of the Indian start-up ecosystem was enough to convince him about the massive potential to be part of this upcoming segment.
“This hands-on experience allowed me to appreciate the vast potential inherent in India’s dynamic startup ecosystem. Motivated by this realisation, I founded Incubate Fund Asia in 2016, initially known as Incubate Fund India. Taking on the role of Founder and General Partner, I have been privileged to steer the course of startups in the region,” reminiscences Murakami.
“Incubate Fund Asia has been a key supporter of 27 Indian companies, including standout names like ShopKirana and Captain Fresh. Our journey started with an initial investment of $3 million (Rs 25 crore) and has since grown significantly, with a substantial injection of $20 million (Rs 210 crore) into the growth of these innovative enterprises. Our global investments cover a diverse range, including B2B, B2C, supply chain, and consumer tech startups in both Tier 1 and Tier 2 markets,” adds Murakami.
Rajeev Ranka, Partner, Incubate Fund Asia further states, “A noteworthy milestone in our commitment came in September 2023 when we announced the first close of our third fund, aiming for a total of $50 million (Rs 420 crore). This emphasises our ambitious vision and unwavering dedication to fostering lasting growth and solid support for emerging startups. Our typical investment falls in the range of $500,000 to $1.5 million (Rs 4 crore – Rs 12.5 crore), reinforcing our role as a driving force for startup growth, both in India and beyond.”
In the automotive space, the company was amongst the earliest backers of Yulu, India’s first micro-mobility service provider.
The partner says that “India’s startup ecosystem is one of the most vibrant and dynamic in the world, offering a wealth of opportunities for innovation and growth.”
Incubate Fund Asia aims to focus on supporting startups that are addressing real-world challenges and making a positive impact on society.
“We are particularly interested in startups that are leveraging deep technologies, empowering underserved communities, and strengthening critical infrastructure sectors. We believe that these startups have the potential to transform India’s economy and create a better future for all,” says Murakami.
Funding winter
It is no secret that while one reads a lot of news about successful start-ups across the globe thanks to a combination of various factors such as the uniqueness of idea, time to market, strategy and timely proper funding. On the other hand, there are a higher number of startups whose ideas or business models did not take a positive turn and hence led to some investors treading carefully. Some describe this phenomenon as Funding winter, wherein some start-ups are finding it difficult to raise fresh capital at a acceptable deal.
Murakami thinks otherwise. “We do not agree with the notion that there is a funding winter in India. In fact, we believe – that the start-up ecosystem in India has tremendous potential, and we are committed to supporting it by investing in innovative and disruptive ideas. While it is true that the funding environment in India has become more competitive, we believe that this is a positive development for the start-up ecosystem. It has led to increased scrutiny of start-ups and has encouraged them to focus on building sustainable businesses.”
The partners believe that the Indian start-up ecosystem has tremendous potential.
