Join our Waitlist for Expert Advice!

Early Partners of Fearless Founders With Audacious Goals The early-stage, technology-focused, sector-agnostic investment firm Stellaris Venture Partners is optimistic about founders who are persistent and committed to tackling significant challenges in India.

By Sujata Sangwan

This story appears in the July 2023 issue of Entrepreneur India. Subscribe »

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Rahul Chowdhri, Partner at Stellaris Venture Partners

Bengaluru-based VC firm Stellaris Venture Partners is focused on making investments in large, technologically disruptible sectors. Rahul Chowdhri, Partner at Stellaris Venture Partners, stated that "in that context, we are actively looking at backing founders building companies in SaaS, infra/dev tools, fintech, commerce, climate, brands, gaming, education, health, and agri sector."

The early-stage, technology-focused, sector-agnostic investment firm is optimistic about founders who are persistent and committed to tackling significant challenges in India. "The ecosystem has enough dry powder to support such startups. However, the more experienced investors will keep pressing for more information. In addition to growth, they will search for businesses that use capital effectively and build with an eye towards unit economics," said Chowdhri.

Chowdhri predicts that late-stage finance will remain challenging. This is a result of both their short exit duration and the discrepancy between founders' and investors' expectations regarding valuation. Late-stage investors will maintain their caution due to the lack of clarity surrounding the near-term exit windows. Second, the majority of late-stage businesses raised their previous round at exorbitant values that will be challenging to defend.

"Our plan is to maintain our current pace of 9–10 investments annually. We invested systematically, and we kept up this pace through 2021. On the other hand, we have always sought out founders who are driven to find solutions to customers' problems, have the appropriate profit structure, and are prepared to accelerate once the PMF (product market fit) is evident. In that regard, we do not anticipate a change in the types of businesses we will support this year.

"We advise all entrepreneurs to avoid running out of money until there is more clarity regarding the sentiment towards late-stage funding," Chowdhri stated.

As a fund, Stellaris consistently maintains a sizable reserve for its current investments. The company may need to use some of these reserves to support good companies.

"We are incredibly fortunate that the majority of our portfolio is exceptionally well capitalised," emphasised Chowdhri.

The venture capital firm claims to closely collaborate with the founders of its portfolio firms to plan their runway and burn. The majority of the companies it engages with place a heavy emphasis on two costs: marketing and human resources.

"Our proactive approach involves working closely with our portfolio companies to diligently strategize and prepare for these crucial areas well in advance, ensuring they are well-equipped to navigate potential challenges effectively," said Chowdhri.

Stats:

No of Startups Invested in: 37 since inception including 3 in FY23

No of Exits: 11 since inception

Focus Sectors: SaaS, Dev/Infra, Fintech, Commerce, Consumer Tech, Creator Economy, Climatetech, EVs, Agritech, Education, Healthtech

Fund Size: Investing from 2nd fund (USD 225 million), 1st fund raised in 2018 (USD 90 million)

Ticket Size: USD 250,000 - USD 6 million

Sujata Sangwan

Former Sr. Correspondent

Sujata is an engineering graduate and has done her Post Graduation in Human Resource Management. She has a deep interest in startups, venture capitalists & technology. 
Business News

This New Restaurant Is Banking on One Dish — Because It's the Only Entrée on the Menu

The new hotspot is gaining buzz on social media for its innovative yet super simple concept.

Social Media

Stop Chasing Algorithms — Here's How Creators Can Take Control of Their Content and Monetize on Their Own Terms

Social media platforms promise creators visibility, but the real challenge lies in relying on algorithms for income.

Business News

LinkedIn Is Verifying Users for Free — And Kicking Out Fake Recruiters in the Process

LinkedIn is more than halfway to its goal of verifying 100 million users, and unlike X and Meta, they're not charging for it.

Leadership

4 Bold Leadership Moves Every Successful CEO Uses to Navigate Change

Ready to turn fear into fuel and lead with confidence? In this article, I share how leaving my corporate job without a plan led me to build a thriving business. Learn four bold strategies to embrace uncertainty and turn challenges into opportunities for growth today.

Leadership

Fear is Inevitable. Get Used To It — Here's How the Army Helped Me Through Every Career Change

From combat jumps to job pivots, here's how mastering transitions can help you land successfully in any role — with confidence, preparation and adaptability.