Top Startup Investors in India in 2023
2023 was a challenging year in the Startup Ecosystem worldwide, especially from the fundraising perspective. Despite the challenging funding landscape of 2023, which saw a significant decrease in capital infusion into the Indian startup ecosystem, a select group of investors demonstrated remarkable resilience and foresight.
This exclusive cohort navigated through the capital drought and emerged as pivotal players in driving the growth trajectory of new-age tech enterprises.
In the face of dwindling funding figures, startups grappled with a seven-year low in capital raised, reminiscent of levels last seen in 2017.
According to a report, Indian startups secured a modest $10 billion across 897 deals, starkly contrasting the $13 billion amassed across 996 deals in 2017. Understandably, the year-on-year investor engagement in startup funding activities experienced a notable downturn.
This optimism is founded in India’s resilient position as the third-largest global tech startup hub, boasting over 68,000 startups and a robust investor community exceeding 9,700 members.
Moreover, the remarkable contribution of Indian startups to employment generation cannot be understated, with over 1 million jobs created in the past decade alone.
This prevailing sense of optimism serves as a beacon for investors, propelling them to seek out and seize the next transformative opportunity within the Indian startup ecosystem.
Additionally, investors are poised to leverage the substantial war chest of $23 billion accumulated between 2021 and 2023. Notably, a significant portion of these funds still needs to be tapped, with over one-third of investors to allocate even 50% of their startup fund corpus.
As we advance, we must recognize the investors who weathered the storm of market adversities in 2023, spearheading numerous impactful deals and fostering stakeholder confidence.
Their unwavering commitment to the Indian startup ecosystem underscores their pivotal role in shaping its future trajectory.
Without further ado, let us present the esteemed roster of the top startup investors in India in 2023.
AngelList India
AngelList India Achieves Record-Breaking Deal Activity in 2023.
AngelList India secured its position as the global leader in deal activity within the world’s third-largest startup ecosystem in a remarkable feat. Throughout 2023, the platform facilitated a staggering 180 deals, marking a milestone unparalleled in the startup landscape.
Among its notable investments, AngelList India threw its weight behind prominent players such as CareFi in the health tech sector, EquityList in fintech, Proost Beer in the burgeoning craft beer market, and STAGE in the hyperlocal over-the-top (OTT) content realm, showcasing its diverse and discerning investment portfolio.
Since its inception in 2009 by visionary entrepreneur Naval Ravikant, AngelList has revolutionized the investment landscape by democratizing access to capital. Through its innovative platform, accredited and aspiring investors can participate in deals with contributions as minimal as $1,000, leveraging the power of investment syndicates.
Furthermore, building upon its legacy of innovation, AngelList introduced the groundbreaking concept of the rolling fund in the United States in 2020. This pioneering model offers a streamlined approach to venture capital, empowering emerging fund managers with expedited processes for initiating and finalizing investment deals, propelling the startup ecosystem forward with agility and efficiency.
LetsVenture
Stride Ventures
In 2023, Stride Ventures became the most active venture debt investor, securing 110 deals annually. Notable among its portfolio are leading startups such as fintech unicorn Slice, cloud kitchen giant Rebel Foods, fintech disruptor OneStack, and mobility innovator Chalo.
Established in 2019 by Ishpreet Gandhi, Stride Ventures, headquartered in Delhi, specializes in providing venture debt to startups across diverse sectors, including fintech, agritech, B2B commerce, healthtech, B2B SaaS, mobility, and energy solutions.
The firm has cultivated a robust portfolio spanning over 100 startups operating in various sectors such as consumer internet, SaaS, fintech, and B2B platforms. Notable companies within its portfolio include SUGAR Cosmetics, Mensa Brands, Exotel, The Good Glamm Group, Yubi, HealthifyMe, Ace Turtle, Rebel Foods, and Waycool.
In a strategic move, Stride Ventures announced the initial closing of its third debt fund, amounting to $100 million, in 2023. The firm aims for a final close exceeding $200 million for the fund, backed by institutional investors, including banks, insurance companies, and family offices.
With a focus on prudent investments, Stride Ventures targets fast-growing startups with robust business models, strong unit economics, and adept management teams, ensuring sustainable growth and value creation within its portfolio.
Alteria Capital
Alteria Capital, a venture debt firm headquartered in Mumbai, marked its presence in 2023 with the announcement of 107 investment deals. Notable recipients of its capital infusion during the year include Jumbotail, a B2B marketplace; Giva, a direct-to-consumer jewellery startup; Mensa, an e-commerce roll-up unicorn; EMotorad, an e-bike manufacturer; and Mokobara, a direct-to-consumer backpack startup, among others.
Founded in 2017 by Ajay Hattangdi and Vinod Murali, both of whom held leadership positions at Silicon Valley Bank India, Alteria Capital provides debt financing to innovative startups, often those backed by prominent venture capital firms.
At present, Alteria Capital is raising $80 million to $100 million for the interim period of its third fund. This initiative aims to bolster the total capital pool of Fund 3 to a range of $275 million to $300 million.
The fund’s strategic focus is supporting startups operating in the fintech, consumer, and B2B sectors, particularly those with liquidity requirements for inventory expansion, receivables management, and debt consolidation.
We Founder Circle
We Founder Circle, an angel investment networking platform, made waves in 2023 with the announcement of 103 investment deals. Notable among its investments are Settl, a coliving startup; TestNTrack, a SaaS platform; and Stylework, a coworking marketplace, among others.
Established in 2020 by Gaurav Sanghavi, Neeraj Tyagi, Bhawna Bhatnagar, Deo Saurabh, and Vikas Aggarwal, We Founder Circle has supported over 70 indigenous startups. Leveraging a vast network of 6,500 investors spanning 40 countries, the platform is a pivotal conduit for startups seeking angel investment.
We Founder Circle introduced the Invstt app last year to streamline the angel investing process. This innovative platform simplifies every aspect of angel investing, from discovery and evaluation to investment transactions and portfolio management, enhancing accessibility and efficiency for investors and startups alike.
Further fortifying its position in the investment landscape, We Founder Circle’s GIFT City Fund raised an impressive $10 million in December, attracting over 250 investors. This fund is strategically designed to empower startup investors with the opportunity to invest globally, transcending geographical boundaries and unlocking new avenues for investment growth and diversification.
100X.VC
100X.VC, an early-stage venture capital firm, concluded 62 investment deals in 2023, providing crucial backing to emerging startups such as Pikndel, a same-day delivery service platform; Offside, a social app catering to cricket enthusiasts; and Roopya, an analytics and infrastructure-as-a-service company.
Initiating their journey in 2019 by Sanjay Mehta, Ninad Karpe, Shashank Randev, Yagnesh Sanghrajka, and Vatsal Kanakiya, 100X.VC operates as a sector-agnostic fund, actively investing in promising early-stage startups across various industries.
In a significant development in October, 100X.VC unveiled a new cohort comprising 15 startups, each funded through Class 10. The firm allocated $160,000 per startup, led by Sanjay Mehta, totalling approximately $2.3 million in investments facilitated via iSAFE notes.
The selection process for its tenth cohort involved a meticulous screening of over 2,000 applications spanning diverse sectors, including fintech, climate tech, and B2B SaaS, underscoring 100X.VC’s commitment to fostering innovation across a broad spectrum of industries.
ah! Ventures
ah! Ventures, a prominent Mumbai-based venture capital firm, demonstrated its investment prowess in 2023 by backing 55 deals. Noteworthy among its portfolio are Klassroom Edutech, supported by Suniel Shetty, FlexifyMe in the healthtech domain, Twyn in deeptech, and Helo Health in medtech, among others.
Founded by Harshod Lahoti and Abhijeet Kumar, ah Ventures is a meticulously curated, sector-agnostic fundraising platform catering to early-stage startups seeking capital up to $10 million. With a strong presence in Mumbai, the firm has championed numerous early-stage ventures spanning diverse sectors, including notable entities like FlexifyMe, CarEasy, and Sugar Watchers.
Since its inception in 2012-13, ah! Ventures has actively participated in over 140 investment transactions, amounting to approximately INR 286 crore. Typically, the firm initiates its investment journey in the early stages, with cheque sizes ranging from INR 3 crore to 3.5 crore.
In a strategic move to further augment its capabilities, ah! Ventures expanded its team by welcoming three new venture partners last year. The esteemed additions include Mukul Jain from Redbrick Capital Advisors, ProGrowth Ventures, and Viraj Shah, enhancing the firm’s expertise and network within the investment landscape.
Mumbai Angels
Mumbai Angels, a prominent player in the early-stage startup investment landscape, concluded 55 deals in 2023 following its acquisition by 360 ONE, an alternate investment firm, in January of the same year.
Among its notable investments during the period were Cleansta, a personal care startup; Proost Beer, based in Delhi; ixamBee, an online learning platform; and Celcius, specializing in cold supply chain solutions.
Established in 2006, Mumbai Angels Network has a rich history of supporting early-stage startups across India, with notable beneficiaries including Adsparx, Adonmo, and BabyChakra.
In January 2023, 360 ONE, formerly known as IIFL Wealth & Asset Management, solidified its acquisition of a controlling interest in Mumbai Angels, ushering in a new era for the network. Concurrently, Mumbai Angels introduced two new funds: a 1,000 crore INR angel fund and a 300 crore INR venture capital fund.
The angel fund offers a unique level of flexibility for both investors and startups alike, treating each investment as a separate scheme. This structure allows investors to engage in diverse deals while ensuring startups maintain a streamlined cap table.
Meanwhile, the venture capital fund allows investors to participate in every investment opportunity facilitated by Mumbai Angels, further amplifying the network’s impact on the startup ecosystem.
Marwari Catalysts
Marwari Catalysts, a startup accelerator, actively engaged in 50 investment deals throughout 2023. Notable beneficiaries of its support include Jaipur Watch Company, UR Turms, and Bank Sathi.
Established in 2019, Marwari Catalysts has rapidly emerged as a prominent player in the startup ecosystem.
The accelerator’s primary focus is on fostering entrepreneurship in underserved Tier II and Tier III cities.
Through its flagship startup acceleration program, Thrive, Marwari Catalysts provides vital support to startups, aiding them in navigating and thriving in the ever-evolving business environment.
Indian Angel Network
IAN, short for the Indian Angel Network, disclosed involvement in 38 investment deals throughout 2023, extending support to startups across emerging sectors.
Notably, it assumed leading roles in funding rounds for Manastu Space, a spacetech endeavour, and SecurWeave, a cybersecurity startup.
Established in 2006 by Ruparel, Srivastava, and Raman Roy, IAN was conceived to unite angel investors to provide early-stage support to startups.
In a significant development, IAN reported the initial closing of its second venture capital fund, securing INR 355 crore ($42.5 million).
The fund aims for a total corpus of INR 1,000 crore ($119 million). Additionally, the organization appointed Sarika Saxena as the managing partner of IAN Alpha Fund, its venture capital arm.
IAN outlined its commitment to investing in early-stage startups spanning a diverse range of sectors from its second fund.
These sectors include cleantech, healthtech, fintech, deeptech, spacetech, consumer goods, agritech, cybersecurity, hardware, and robotics, signifying its broad investment strategy.
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