Given the recent push by the government to startups in India and easing of norms by SEBI, many high profile businessmen and business groups have increasingly become interested in investing in India’s surging next generation.
The latest to join the list is the billionaire Sajjan Jindal from renowned Indian business house Jindal Group, who has set up a venture fund named JSW Venture Fund. The fund has got a whopping Rs 100 crores in order to invest in internet and technology startups.
The fund will be managed by the Jindal heir, Parth Jindal who is currently pursuing business management from Harvard Business School and the investments will be made from the proprietor capital of the Jindal family instead of being strategic investments, reports ET.
According to the same person, the group has hired Gaurav Sachdeva, former general manager of strategic investments at Brand Capital(the name behind Times brand) to “start the fund form the scratch” and to lead the funding activities which would largely be limited to early age funding, targeting Seed funding and Series A funding rounds.
The group is especially looking for startups engaged in tech-oriented eCommerce and B2B services and expects to gain Rs 3-6 crore per deal.
Although the fund is yet to be approved by the market regulator SEBI, the group has already begun to associate with entrepreneurs and other VCs for co-investments. Jindal group, worth over $11 billion is known for its diverse investments, especially in the area of sports which is far away from its core business of steel, cement, power and infrastructure.
Jindals however, are not the only Indian business powerhouse who is investing in startups and has set up its own venture fund. While Infosys head Narayan Murthi and Ajij Premji of Wipro have also set up similar venture capital arms, Ambani’s Reliance Industries and Aditya Birla Group have setup accelerators and incubators to support startups in their early stage.
Ratan Tata on the other hand has recently led a string of investments in as many as 12 startups since last year including some of the prominent startups such as Ola, Snapdeal and Urban Ladder.