Mumbai's VC That Funds Moonshot Startups 100X.VC claims to have invested in 105 businesses from its inception to the end of FY 23, and it plans to invest in an additional 70-75 startups in this current FY 23-24, bringing the total to 170-175 portfolio companies.
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Mumbai-based venture capital firm 100X.VC believes that India is a land of opportunities with a positive funding outlook.
"Some exciting sectors/themes that we are keen to explore are D2C consumer challenger brands, within B2B - drones and robotics, 3D printing, startups building use cases for the industrial and manufacturing sectors, and those building solutions and applications on top of generative AI and Web3 protocols," according to Yagnesh Sanghrajka, Co-founder and CFO, 100X.VC. "Ours is a fixed investment model. We invest INR 1.25 crore for a 15% stake in startups, we come in as the first institutional cheque in early-stage startups."
The firm claims to have invested in 105 businesses from its inception to the end of FY 23, and it plans to invest in an additional 70-75 startups in this current FY 23-24, bringing the total to 170-175 portfolio companies.
"We have had a few exits since we are a relatively young fund (have been investing since late 2019), including one partial exit from Class 01 (invested in 2019). As our portfolio firms from prior batches make considerable success in their journeys, we anticipate seeing some more exits over the coming 4 to 5 quarters," Sanghrajka noted.
As an early-stage investor, 100X.VC makes investments in ventures with the potential to become moonshots within the next 5-10 years. "We are investing aggressively so our portfolio can reap the benefit when the tide turns and India is able to attract more and more funds from global destinations. Companies which place utmost importance to unit economics and growth with frugality are the ones that are likely to get funded first," shared Sanghrajka.
Regarding the state of the market, Sanghrajka emphasised, "In India, we are not experiencing a crisis. The situation is different globally. Since India has experienced structural growth, all industries appear to have a bright future. Since we support firms with Indian domiciles and are a sector-neutral fund, we don't believe that most early-stage startups require a change in investing approach."
Sanghrajka predicts that funding for growth and late-stage companies will be difficult for the ensuing 4-6 quarters. The pressure to deploy capital will build over time because the majority of VCs have ample dry powder. Since India's economy is expanding at the fastest rate in the world, finding capital for startups will be marginally less difficult than it is now, despite still being quite selective.
There will be additional bridge rounds going forward, according to Sanghrajka, "but the reduction in funding is now slowing down, and we feel newer investments will again accelerate in the next 2-3 quarters."
Stats:
No of Startups Invested in: 105 (since inception till end of FY 23)
Focus Sectors: D2C Consumer, Drones and Robotics, 3D Printing, Industrial and Manufacturing, Generative AI and Web3 Protocols
Fund Size: INR 145 crore
Ticket Size: INR 1.25 crore
