Founders Launch Second Ventures
Happy Thursday!
More than a dozen entrepreneurs are leaving their established companies to launch new ventures. This trend, alongside other key developments in the Indian startup ecosystem, is highlighted in today’s ETtech Morning Dispatch.
Also in the letter:
- Fintech leaders meet with RBI officials.
- PhonePe appoints a new CMO.
- Deeptech firms face financial challenges.
Second Innings for Founders
Between the past 12 to 15 months as technology and venture investment underwent a reset, more than a dozen founders stepped down from active roles at their startups to launch new ventures.
Data from Longhouse Consulting reveals these founders typically came from companies:
- That achieved a certain scale and the entrepreneurs wanted to build in a different segment.
- Where the original startups were struggling, undergoing restructuring, or shutting down entirely.
Upgrad founder Mayank Kumar, who stepped down from an executive role at the edtech firm in October last year, raised $7 million for his new venture Borderplus.
Priyanka Gill and Naiyya Saggi, co-founders of Good Glamm Group, have each started new ventures.
The Rise of AI
With deeptech and artificial intelligence booming, several founders have pivoted to these emerging fields. Inshorts’ founder Azhar Iqubal has launched Fenado AI, which enables users to create apps and websites without coding.
Dealmaker’s Son Enters the Fray
Rohan Misra, son of former SoftBank Vision Fund chief executive Rajeev Misra, is launching his own fund, Gravity Holdings. The London-based fund has raised around $150 million to back Indian technology startups.
Gravity Holdings plans to increase tech deal activity this year, with more secondary transactions ahead of potential IPOs and major late-stage funding rounds.
Rajeev Misra played a pivotal role in raising the $100 billion SoftBank Vision Fund, transforming global technology investing.
Other Fund Launches
The launch of Gravity Holdings arrives as several venture fund executives are starting their own firms, raising funds in the $200-500 million range. Shailesh Lakhani, who recently left Peak XV Partners, is likely to launch a deep-tech fund. Piyush Gupta has set up Kenro Capital, a secondaries-focused fund.
Former partners from Nexus Venture Partners and Orios are also launching funds.
SaaS Startup Darwinbox Secures $140 Million
Software-as-a-Service (SaaS) unicorn Darwinbox, which specializes in human resource (HR) services, has closed a $140 million funding round co-led by Partners Group and KKR. The round was largely secondary with a small primary component, reaching a blended valuation of around $950 million.
Darwinbox was last valued at $1 billion in 2022 after a $72 million funding round led by TCV.
Fintech Leaders Discuss Digital Payments with RBI
The fintech industry met with the Reserve Bank of India’s (RBI) governor, Sanjay Malhotra, and senior officials in a closed-door meeting at the RBI headquarters in Mumbai on Wednesday.
Conversations focused on:
- Strategies to expand the digital payment market beyond India’s top users.
- Addressing financial fraud in the fintech ecosystem.
- Tackling issues with multilingual platforms required for the next wave of digital payment users.
Amid regulatory hurdles and an ongoing funding slowdown, the fintech industry sought to express its concerns to the RBI governor, hoping for a tech-friendly approach towards the sector.
IPO-Bound PhonePe Appoints New CMO
PhonePe is set to appoint Amit Doshi, former chief marketing officer (CMO) at Britannia Industries, as its first group CMO.
Deeptech Firms Face Funding Challenges
India’s deep tech ecosystem is growing, but a lack of capital is slowing down the progress of early-stage startups in the sector, according to a report by 3one4 Capital.
