Bertelsmann India Investments, a venture capital firm that counts startups such as Shiprocket, Wealthy, Snabbit, Handpickd and Emeritus, among others, in its portfolio, is looking to invest in tech and tech-enabled models where execution compounds. Pankaj Makkar, managing director, Bertelsmann India Investments (BII), spoke to S Shanthi how the firm is going about it. Excerpts:
How was 2025 for BII, and what are your plans for 2026?
2025 was a year of strong momentum for us. We invested in 9 companies across several sectors, while staying disciplined on fundamentals and backing founders who are building for the long term. We were focused on companies with strong operating fundamentals and a clear right-to-win. You can see that in bets like Snabbit, Tetr and Handpickd, along with Inito, where the proposition sits at the intersection of consumer health and intelligent insights, and in our continued confidence in scaled platforms like Shiprocket as they move closer to public-market readiness. For 2026, the plan is consistent: we aim to keep underwriting to fundamentals, keeping reserves available for high-conviction follow-ons, and partner closely with founders who are scaling with governance and operating rigour. We also plan on investing in AI, especially AI Application layers.
What are the sectors you are focusing on in the current cycle?
BII is fundamentally sector-agnostic. We take a bottom-up approach of finding entrepreneurs and then understanding the space. That’s the reason we have a diverse portfolio. We start with the founders, the problem statement, and whether the business can build real defensibility in India. That said, in this cycle, we are spending a lot of time on tech and tech-enabled models where execution compounds. Healthtech is a clear area of momentum, and we continue to track strong opportunities across fintech, edtech, logistics, and select consumer-tech businesses.
What is your investment thesis like?
Our thesis is to back strong, defensible businesses where the moat is real, and to partner with founders as patient capital by staying involved for the long haul through conviction follow-ons. We focus on early-growth companies and work with teams that are building category leadership over years, not quarters. We also take a genuinely long-term view.
What is the cheque size you are looking at for these investments?
Typically, we invest $5–15 million while also maintaining some flexibility for special cases initially, and then we invest up to $40 million over the life of the business, reflecting our patient-capital, conviction-driven approach.
Do you think we will see many more startups getting listed in public markets in 2026, and why?
Yes, we are seeing real IPO intent building. Shiprocket and a few other portfolio companies that we have are gearing up for listings, and the ecosystem feels more optimistic. Public markets are also becoming more receptive, so we expect more scaled startups to test the window in 2026, provided fundamentals and governance are in place.
What are the other startup trends we will see in 2026?
As global models mature, we expect more verticalised AI to be built for specific industries and use cases, with defensibility coming from proprietary workflows, distribution, and data advantages. We are also seeing a new wave of businesses going beyond India.
Beyond IPOs, what are the most realistic exit pathways in 2026–27 (strategic sales, secondaries), and what needs to change for more liquidity?
Beyond IPOs, two pathways look the most realistic: strategic M&A and secondaries. As categories mature, strategic buyers will pay for capability and share, and secondaries will become more common as portfolios age.