Investment firm We Founder Circle is looking to invest in emerging sectors such as sustainability, electric vehicles (EVs), space tech and defence tech by FY25.
“EVs are a major focus for us as the global push towards clean energy and reducing carbon emissions is driving innovation in this space,” Gaurav VK Singhvi co-founder, We Founder Circle (WFC), and an angel investor told FE. He added that the EV market is expanding rapidly, and advancements in battery technology, charging infrastructure, and green mobility solutions make it a promising area for investment.
Startups focusing on sustainable solutions such as renewable energy, carbon reduction and eco-friendly materials–which are addressing critical environmental challenges–are also on the radar. “These startups have the potential to not only deliver strong returns but also create a positive impact on the planet,” Singhvi said.
The firm also believes that quantum computing is set to revolutionise industries by solving complex problems faster than classical computers. Besides, construction technology and Web 3, driven by decentralised technologies, are also some of the sectors the firm is keen to invest in.
Launched in 2020, WFC focuses on backing entrepreneurs from places beyond metro cities. The firm claims that 35% of its portfolio startups are from tier II and III cities. The key portfolio companies include Zypp Electric, BluSmart, Anveshan, Hesa, Oben EV, Vidyakul, AyushPay, Kazam and YPay.
As early investors, WFC has been associated with these firms right from their inception. “There onwards, we have helped them connect with the right partners, distributors, tech and business experts regularly. We have also participated in multiple investment rounds, thus providing a unique all-stage investing and venture-building support,” Singhvi said.
Talking about the challenges faced by VCs and private equity (PE) firms today, Singhvi said that the funding winter has led to a significant reduction in deal flow and capital distribution. “High interest rates, geopolitical tensions, and softening consumption are adding to the complexity. Investors are also exercising heightened caution, focusing on startups with sustainable business models and clear paths to profitability,” he said.
WFC’s current focus is to support and invest across all stages. To enable this, it has divided its investments into two key arms–EvolveX and Avinya Ventures. While EvolveX is an accelerator programme that provides support to early-revenue startups from various sectors, Avinya Ventures is a SEBI-approved early-stage venture capital firm that focuses on investing in startups from seed to Series C stages.
Additionally, WFC also has a GIFT City Fund with a corpus of $30 million and an additional greenshoe option of $30 million to offer startup investors the ability to invest globally without geographical restrictions. The fund aims to provide innovative financial structures and compliance strategies for speedy and convenient cross-border investments. The fund currently has over 250 investors on board. It aims to onboard 300+ investors with a signed contribution of more than $15 million by FY25.
WFC has invested in more than 150 startups in total so far and has had over 7 partial exits to date. The firm is particularly excited about seeing startups demonstrating a path to profitability in 2024. This, Singhvi believes, is largely driven by a renewed emphasis on financial planning, controlling burn rates, and building sustainable business models. “Investors are prioritising startups that can demonstrate efficient operations and long-term growth potential, which bodes well for the overall health of the startup ecosystem,” he said.