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The <a href="http://www.businessinsider.in/searchresult.cms?query=startup+">startup</a> culture is growing in India as high networth individuals (HNIs) have invested more than Rs 1,200 crore into <a href="http://www.businessinsider.in/searchresult.cms?query=venture+capital+">venture capital</a> funds focused on helping early-stage entrepreneurs. 
 These <keyword id="6362476" type="ORGANIZATION" weightage="60" keywordseo="investments">investments</keyword> have flowed in over the past year into these venture <a href="http://www.businessinsider.in/searchresult.cms?query=capital+funds+">capital funds</a> - <keyword id="2491409" type="ORGANIZATION" weightage="80" keywordseo="Orios-Venture-Partners">Orios Venture Partners</keyword>, Zodius Capital, Your-Nest Angel, Kalaari Capital and Blume Ventures - which have together raised Rs 4,360 crore, data shared by these funds with the Economic Times reveal. 
 
These funds have the mandate to invest in app-makers, <a href="http://www.businessinsider.in/searchresult.cms?query=radio+taxi+">radio taxi</a> companies, food-ordering platforms and <a href="http://www.businessinsider.in/searchresult.cms?query=healthcare+">healthcare</a> aggregators and such Internet businesses and other <keyword id="6362513" type="ORGANIZATION" weightage="100" keywordseo="Startups">startups</keyword>. In some funds, over 50% of the corpus raised has come in from high networth individuals. 
 The trend to invest in startups started with top executives and businessmen. "People who are exposed to various asset classes have now begun seeing value in venture funds," says <keyword id="1768757" type="PERSON" weightage="60" keywordseo="Sunil-Goyal">Sunil Goyal</keyword>, CEO of YourNest Angel Fund. 
 
He said: “Even traditionally wealthy investors are warming up to the idea of investing in startup funds." 
 
These numbers are in line with an ET CXO poll on startup investing published on Monday. Over 60% of the 100-plus CXOs polled by ET said they had already invested a portion of their wealth in startups. Another 25% expressed interest in such investments in the future. 
 
· Low awareness level "The HNI response to startup funds has been pretty good, but awareness level is still low," says Rehan Yar Khan, founder-partner at Orios Venture Partners. These funds, Khan says, are not yet as popular as <keyword id="6354553" type="COMPANY" weightage="80" keywordseo="real-estate">real estate</keyword> or equity funds. 
Orios Venture mobilised close to Rs 150 crore from HNIs in its earlier fund, which closed in August 2014. It is now raising Rs 1,200-crore fund and expects to get Rs 300 crore from rich Indian investors. 
Zodius Capital recently raised over 45% of its Rs 700-crore fund from rich domestic investors. 
 
· Ticket sizes have grown 
Individual ticket sizes have also grown over the past few months with average investment ticket sizes of Rs 10-20 crore. Wealth managers seek larger investments as these funds have a high failure rate. A portfolio of 20 companies may only have 3-4 multi-baggers (yielding returns of over 50 times), the rest being average performers and many turning plain duds. 
 
Wealth managers say funds will have to generate gross returns in excess of 20 per cent to make a meaningful case. "We'll have to wait and see how the first batch of funds delivers in terms of returns. Vintage funds in this segment will set the tone for future investments in startups," said Karthik Reddy, managing partner at Blume Ventures. 
 
 (Image: Indiatimes)

Rich people from around the world have invested more than Rs 1,200 cr in Indian startups

New Delhi, Dec 30 () Start-up technology-enabled car service provider GoMechanic on Monday said it has raised Rs 105 crore in Series B funding in a round led by Chiratae Ventures and Sequoia Capital.
 Orios Venture Partners was the other investor which participated in the 3rd round of institutional funding, GoMechanic said in a statement.
 The investment will be used to support expansion into 10 more cities by the end of 2020 in its EV thrust, brand promotion and in streamlining spare parts procurement, it added.
 Commenting on the fund raised, GoMechanic Co-Founder Kushal Karwa said, "The money raised will allow us to continue our aggressive geographical expansion besides investment in innovation to keep us ahead of the curve."
 GoMechanic Co-Founder Amit Bhasin said the current fundraise will reinvigorate the company's thrust in providing scalable technology first solutions for the USD 11 billion unorganised automotive repairs and maintenance market.
 Chiratae Ventures Executive-Director Ranjith Menon said, "India is among the largest car manufacturers in the world where bulk of the cars on the road are out of warranty. We are excited to work with the GoMechanic team addressing this huge gap in a technology first manner."
 Commenting on the company's investment in GoMechanic, Sequoia Capital India LLP Vice President Abhishek Mohan said, "In the 12 months since Sequoia India led the Series A, the company has scaled many times on the back of its asset light network of workshops and most importantly built true customer love. Given the massive market potential of USD 5 billion plus, we are excited to see what comes next."
 Earlier this year, GoMechanic had raised Rs 35 crore in a series-A round led by Sequoia Capital and Orios Venture Partners. In 2017, it had raised close to Rs 7 crore from Orios Venture Partners and Kunal Bahl and Rohit Bansal.
 In 2016 the company has raised Rs 2 crore in angel funding from Dhianu Das. GoMechanic offers a platform for multi-brand car service centres. RKL SHW
SHW

GoMechanic raises Rs 105 crore in latest round of funding

Looks like Indian government's '<keyword id="3003094" type="UNKNOWN" weightage="100" keywordseo="Startup-India">Startup India</keyword>, <keyword id="3086992" type="UNKNOWN" weightage="100" keywordseo="Stand-up-India">Stand Up India</keyword>' programme is getting onto the right track. In a recent development, <keyword id="104385" type="COMPANY" weightage="100" keywordseo="Small-Industries-Development-Bank-of-India">Small Industries Development Bank of India</keyword> (<keyword id="6391656" type="COMPANY" weightage="100" keywordseo="SIDBI">SIDBI</keyword>) has cleared Rs 930 crore from the Rs 2,000-crore fund-of-funds that was launched in August to support venture capital funds. 
 SIDBI's <keyword id="3007722" type="UNKNOWN" weightage="100" keywordseo="India-Aspiration-Fund">India Aspiration Fund</keyword> (<keyword id="6355075" type="ORGANIZATION" weightage="100" keywordseo="IAF">IAF</keyword>) has already screened over 30 venture capital funds since its launch, and sanction letters have been issued to more than half of them. 
 "Proposals from 24 venture capital funds for an aggregate commitment of Rs 930 crore have been cleared in principle by the <keyword id="3181679" type="UNKNOWN" weightage="100" keywordseo="venture-capital-investment-committee">venture capital investment committee</keyword> (<keyword id="2838877" type="UNKNOWN" weightage="100" keywordseo="VCIC">VCIC</keyword>) so far, out of which sanction letters have already been issued to 16 VCFs with an aggregate commitment of Rs 482 crore, where documentation is in progress," SIDBI Chairman and MD Kshatrapati Shivaji told ET. 
 
There are a dozen proposals for a potential commitment of around Rs 500 crore that are lined up for the consideration of Venture Capital Investment Committee (VCIC), which comprises of a panel of experts in various fields who are advising SIDBI in screening the venture funds. 
This panel includes TV Mohandas Pai, chairman of Manipal Global Education Services; Sanjeev Bikchandani, founder of Naukri.com owner InfoEdge; Saurabh Srivastava of Indian Angel Network; Kiran Karnik, former Nasscom chief; Vaidyanathan, IIM-Bangalore; and Harkesh Mittal, programme head of innovation, entrepreneurship and technology commercialisation at the Department of Science and Technology. Two senior SIDBI executives are also included in the panel. 
 
After application, the proposals are put up to an executive committee of the bank's board, which then sanctions these applications. SIDBI has already supported Blume Ventures, Orios, YourNest, Ivy Capital and Infuse Ventures through IAF. 
 
<a href="http://bankersherald.in/wp-content/uploads/2015/06/SIDBI-bank-recuritment.jpg">Image source</a>

SIDBI clears Rs 930 crore to support VC funds

Japan’s <keyword id="280185" type="COMPANY" weightage="80" keywordseo="Softbank-Corp">SoftBank Corp</keyword> is planning to pick up 25-30% stakes in <keyword id="2550719" type="UNKNOWN" weightage="80" keywordseo="OYO-Rooms">Oyo Rooms</keyword>, which has emerged as the largest player in the fast growing online hotel booking space. 
 
Japan's telecoms and internet giant SoftBank has also held talks with Oyo Rooms for leading a massive $100 million or Rs 630 crore financing round in the company, people familiar with the matter told Times of India. 
 
If everything goes well, this would be the third institutional fund-raise for Oyo Rooms, which was founded by Ritesh Agarwal, a college dropout, as Oravel Stays three years ago. 
 
Softbank is an existing investor in e-tailer Snapdeal, taxi-hailing service Ola and realty portal Housing. 
 
People familiar with the matter, on the condition of anonymity, said Softbank is said to have put in a term sheet, a non-binding agreement between the company and the investor, but the final terms of the funding are yet to be closed. 
 
Sources told TOI that Tiger Global, one of the most aggressive and prolific backers of India's consumer internet story, had also discussed a potential investment in the Oyo Rooms but may have pulled out of the talks. 
 
When contacted by TOI, a Softbank Corp spokesperson in Tokyo said over an email, "We are not able to comment on this." 
 
Meanwhile, CEO of Oyo Rooms also did not offer any comments regarding the matter. 
 
Oyo is present across 15 cities with 4000 budget hotel rooms on its platform. Starting at moderate charges of Rs 999 per night, hotel owners that partner with Oyo see a significant spike in occupancy levels, the aggregator claims. 
 
In March, Oyo had raised $25 million from Greenoaks Capital, an investor in e-Commerce major Flipkart, with existing investors Sequoia Capital and Lightspeed Venture Partners also participating valuing it at $100 million. 
 
"We are seeing for the first time that technology is touching the lower income section so the Indian market will see lots of products and interests in these segments going forward," Rehan Yar Khan, general partner at Mumbai-based early-stage venture fund Orios Ventures told TOI. 
 
Founder of Oyo Rooms, Agarwal, who was chosen for the prestigious Peter Thiel Fellowship aims for Oyo to become the largest technology-enabled network of hotels in the world. 
 
He is also looking to expand its network to 1000 hotels in 25 cities by this year end.

SoftBank says ‘moshi moshi’ to Oyo Rooms

For startups to grow they must garner funds from investors; and to gather funds, startups need to have a robust product-market fit along with a promising team and a solid business plan with the potential to scale. Then comes the role of angel investors and <keyword id="6357097" type="COMPANY" weightage="100" keywordseo="venture-capital">Venture Capital</keyword> (VC) <keyword id="6357455" type="EVENT" weightage="100" keywordseo="Funding">funding</keyword> that usually surfaces when larger amounts are required to grow a business. 
 Lately, major <keyword id="982553" type="UNKNOWN" weightage="100" keywordseo="Indian-startups">Indian startups</keyword> have seen a tremendous boost from venture capitalists. To start with, we saw how Tiger Global Management, Softbank Corp., Morgan Stanley, Sequoia Capital, Accel Partners, IDG Ventures India and SAIF Partners managed to support promising Indian startups like that of Flipkart, Snapdeal, Ola, Zomato, ShopClues, Urban Ladder and many others. Moreover, it is not only the bigger firms who are eyeing VC funds, relatively younger and smaller firms like OYO Rooms, Swiggy and Grofers have also joined the race. 
 Apart from ruling the e-commerce and fashion industry, <keyword id="153868" type="UNKNOWN" weightage="100" keywordseo="VC-funding">VC funding</keyword> is now gradually moving into other sectors too, such as agriculture, healthcare and education. As per the data from the upcoming Wharton India Economic Forum (WIEF), which is all set to launch the Wharton India Startup Competition (WISC) with over 500 entries, though majority of applicants (around 25%) belong to the e-commerce industry, the healthcare segment is not far away with around 22% applicants. Moreover, most of the participating startups already have pre-seeded and seeded funding arrangements and around 31% of them have listed themselves as social enterprises. 
 
The ecosystem for VC funding for Indian startups would be discussed at length at the Wharton India Economic Forum (WIEF). WIEF is a two-day event starting from January 6, 2017, which will bring together the best entrepreneurs, investors, distinguished Wharton faculty, students and inspirational speakers. Attendees will not only have numerous opportunities for interaction and networking across the board but will also witness in-depth discussions in terms of understanding the evolving business landscape in India and the need for business model innovation from the government, various industry leaders, and distinguished Wharton faculty. 
 
The relevance of this summit doesn’t end there. It is also known for hosting the Wharton India Startup Competition (WISC) which is giving Indian startups the opportunity to present themselves in front of an esteemed panel of judges and also win cash prizes of over $25,000 and unparalleled mentorship of up to 4 months from some of the most renowned names in the industry on strategy and funding. The jury for WISC comprises top-notch personalities with the likes of Bharati Jacob (Co-founder of Seedfund), Nipun Mehra (Investor at Sequoia Capital India), Rehan Yar Khan (Managing Partner of Orios Venture Partners), Tarun Davda (Managing Director of Matrix Partners), Aditya Nair (Investor at Nyca Partners), Ajay Hattangdi (CEO India &amp; Group COO of InnoVen Capital Group), Ankit Shah (Vice President at Unilazer Ventures), Sameer Verma (Director &amp; Junior Partner of Nexus Venture Partners), Saurabh Joshi (Strategy Manager at PayPal) and Shantanu Gangal (Head – Analytics at Fundbox). Also, past finalists of this prestigious event includes names such as Ketto, Haptik, Zoomcar, Zostel, Targeting Mantra, Qlicket, Samaan and Ambitioni. 
 
Needless to say, such competitions and summits go a long way in not only promoting upcoming startups but also in educating the audience and the participants regarding the funding scenario. Not many seem to be aware about the types and rounds of funding, the know-how of VC funding and even the right way to go about securing such funds, hence this is surely going to be one the most-sought after events at the start of the next year. 
 
(Image Credits: Thinkstock) 
 
(About the Author: This article has been authored by Aman Jain, Chairperson WIEF 2017)

How VC Funding Fuels the Indian Startup Ecosystem

New Delhi, Feb 1 () Startups on Saturday welcomed the Budget proposal of relaxing ESOPs taxation, but said linking it to Section 80-IAC will limit its impact to a small section of startups.
"The relaxation for ESOP taxation was welcome but linking it to Sec 80-IAC makes it meaningless as it impacts only a 100 odd startups. We had requested for this to apply to all DPIIT (Department for Promotion of Industry and Internal Trade) registered startups. I do hope they correct that urgently," Indian Angel Network Chairman Saurabh Srivastava said in a statement.
During her Budget speech, Finance Minister Nirmala Sitharaman proposed easing of tax payments for startups - a decision which has been hailed by budding entrepreneurs.
"In order to give a boost to startup ecosystem, I propose to ease the burden of taxation on the employees by deferring the tax payment by five years or till they leave the company or when they sell, whichever is earliest," she said while presenting the Union Budget for 2020-21.
Employee stock option plan (ESOP) is a significant component of compensation for these employees, she said. Currently, it is taxable.
"This leads to cash flow problem for the employees who do not sell their shares immediately and continue to hold the same for long term," she said.
During their formative years, startups generally use ESOPs to attract and retain highly talented employees, she added.
Orios Venture Partners' Rehan Yar Khan said it is good that entry level capital gains had been differed to five year, exit or sale, whichever sooner. "Not Good: Yet need to pay entry level capital gains in 5 yrs if yet with company. The exemption only applies to Startups registered with IMB," he tweeted.
LocalCircles head Sachin Taparia tweeted: "This benefit seems to be extended to only startups incorporated after April 1, 2016. Needs to be extended to all startups that are eligible for #angeltax benefit. Also, need to make #esop taxable at sale without the 2 other conditions of 5 years or employee exit". SR BAL

You Searched For "Orios Ventures" and got 6 results

Rich people from around the world have invested more than Rs 1,200 cr in Indian startups

BI India Bureau

GoMechanic raises Rs 105 crore in latest round of funding

PTI

SIDBI clears Rs 930 crore to support VC funds

BI India Bureau

SoftBank says ‘moshi moshi’ to Oyo Rooms

BI India Bureau

How VC Funding Fuels the Indian Startup Ecosystem

Guest Author

Startups hail Budget for relaxing ESOPs norm

PTI

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