The new fund with a target corpus of $50 million has raised $10 million so far and will back startups at pre-Series A and Series A stages.
Paytm’s founder Vijay Shekhar Sharma, Myntra and CureFit co-founder Mukesh Bansal, the US-based marketing company Zeta Interactive’s CEO David A Steinberg and other high net-worth individuals from China, Singapore, and the US have invested in a new startup fund — Multiply Ventures launched by former Alibaba director and Paytm president Bhushan Patil, Myntra’s chief marketing officer Sanjay Ramakrishnan, and Myntra’s co-founder Raveen Sastry.
The new fund with a target corpus of $50 million has raised $10 million so far and will back startups at pre-Series A and Series A stages, Patil told Financial Express Online.
Currently, the three founders have invested in 30 startups in the last two years as angel investors and are looking to back another 30 companies through the new fund in the next three years, Patil said.
Multiply Ventures would back startups in exchange for 15-20 per cent equity stake with a holding of three-seven years while “we would want to stay with the company for seven years,” said Patil.
Patil said that the fund will invest in edtech, fintech, and retail-focused ideas and would cut larger cheque sizes “after around a year or two when we have a better sense of the market and how it will grow.”
“Edtech is growing at a CAGR of 55 per cent that will offer great opportunities while fintech and retail-tech services are still nascent in India that also offer great growth opportunities,” said Patil.
Among the 30 companies backed by founders include AdPushup, Hero Electric, Mfine, ShopKirana etc.
“Helping our previous brands (where we worked) acquire millions of customers helped us understand not just sectors where we are investing but also customers in these sectors,” said Patil.
Former founders and top executives at small and large corporations launched startup fund has been a global phenomenon. Former Tata Sons chairman Cyrus Mistry had announced a venture capital fund — Mistry Ventures in 2018, Uber founder Travis Kalanick had launched 10100 Fund in the first half of 2018 etc.