RTP Global's $1 Billion Bet on Indian Startups

Welcome to "Swadesi Startups Speaks," the podcast that brings you the latest and most exciting developments from India's vibrant startup ecosystem. In today's episode, we're exploring a range of topics from the rise of women-led startups in Bengaluru to the anticipated tech IPOs and the role of startups in shaping India's economic future. Whether you're an entrepreneur, investor, or just someone fascinated by the startup world, this episode is packed with insights and stories that showcase the spirit of innovation and resilience in India. So, let's dive into the world of Swadesi startups!

How Bengaluru has become the top destination for women-led startups in India, with 1,783 such enterprises, according to Tracxn data. The article highlights several successful women-led startups in India and notes that despite the growth, there is a glaring gender divide in the startup ecosystem. The article also mentions initiatives to support women-founded startups and the decline in funding for women-led startups in 2023.

IIT Madras has launched 'Incubators', a platform that streamlines the process of finding and selecting incubators for startups. The platform provides comprehensive information on over 920 incubators and accelerators in India, allowing founders to compare and analyze them easily. The platform also showcases the success metrics of incubated startups, investor networks, and virtual support prevalence. The platform aims to boost the start-up ecosystem in India and foster collaboration and excellence.

There will be a flood of tech IPOs (initial public offerings) in the Indian market after the upcoming elections. These IPOs are expected to raise over INR 7,300 crore collectively. Additionally, at least nine new-age tech startups are preparing to tap the markets in 2024, with a target of raising over USD 2 billion (around INR 16,600 crore). These startups include FirstCry, Lenskart, Swiggy, PayU, MobiKwik, Infra.Market, OfBusiness, and PhonePe. The last time India saw a similar rush of tech-led startups to the market was in 2021. The upcoming state elections and the general election will have an impact on the overall market sentiment, and the primary market is expected to be dull in the run-up to elections. However, some companies are looking to exploit a small window before the general elections. Ola Electric Mobility has already converted itself into a public company and is planning to launch its IPO before March.

SIDBI and NSIC, two government-backed organizations, are set to invest INR 300 Cr in Sorin Investments, a startup fund led by former KKR India head Sanjay Nayar. Sorin Investments has raised INR 1,000 Cr and plans to invest in early-stage technology startups across industries. The development comes at a time when the Indian startup ecosystem is facing a funding winter, with investments falling to 2020 levels. Despite this, investors continue to launch India-focused funds to invest in startups.

RTP Global, a UK-based venture capital firm, has invested in 35 startups in India since entering the market in 2011. The company has announced its latest fund, RTP IV, with a corpus of $1 billion, and plans to invest nearly one-third of the fund in 20 Indian startups. The firm focuses on early-stage investments in technology startups and has made notable exits from companies like FreeCharge and Snapdeal. The article highlights the company's unique capital structure and its focus on unconventional measures to expedite investment processes.

Microsoft India's Executive Director, Sangeeta Bavi, discusses the company's support for startups in India, particularly in the realm of AI. She highlights the importance of technology in fostering growth and innovation, and how AI will be at the heart of transforming industries and driving digital empowerment in India. She also addresses concerns about data security and emphasizes Microsoft's commitment to providing enterprise-grade security and compliance. Additionally, she outlines Microsoft's vision for long-term support and empowerment of startups in India, including initiatives like 'Project Amplify' and 'Microsoft AI Innovate'.

The Chief Economic Advisor (CEA) of the Union government, V Anantha Nageswaran, has said that startups will play an important role in helping India become the third largest economy in the world. He believes that startups will drive efficiency, revenue, and economic returns for the country. The CEA mentioned that India has made exceptional progress in the startup landscape over the past decade, with over 1.12 lakh startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) across 763 districts. He also highlighted that 49% of these startups are from tier-2 and 3 cities, which have become game-changers due to improved infrastructure and supportive government policies. The CEA praised Kerala's startup journey, noting that the state has earned a distinguished position among the world's top business incubators. The event was attended by around 1,500 delegates, showcasing sophisticated products from emerging sectors.

The current funding winter for Indian startups is expected to end by March 2024, according to investors and experts. The drying up of funds for startups has been a major theme at the recently concluded TiE Global Summit 2023. Investors are waiting for the uncertainty in geopolitics to clear before investing, but they are sitting on a lot of "dry powder" and looking for opportunities to invest. Startups will need to come up with credible plans to ensure proper returns on investment, as fancy valuations will no longer impress fund managers. The summit also highlighted the importance of networking, collaboration, and knowledge sharing among entrepreneurs.

Zephyr Peacock India's plan to raise $200 million during a funding winter, and the top 10 most processed foods that impact health.

Thank you for joining us on this episode of "Swadesi Startups Speaks." It's been a journey filled with inspiring stories, insightful analyses, and a glimpse into the future of India's startup landscape. Remember, every big idea starts with a small step, and every successful startup begins with a dream. Keep supporting and celebrating the entrepreneurial spirit that drives our nation forward. Don't forget to subscribe to our podcast for more updates from the world of Indian startups. Until next time, stay innovative, stay inspired, and keep building the future!