Inflection Point Ventures to invest $20M in startups in India this year

Inflection Point Ventures (IPV) aims to double its investment in startups to $20 million (about Rs 155 crore) this year as it looks to play a larger role in mentoring and growing India's startup ecosystem.

IPV, which comprises about 4,000 investors, is also looking at expanding its network to 5,000 members by the end of the year.

"We, as a network of CXOs, came together to help startups grow and succeed, and the belief is that everyone can grow along with startups...it creates jobs, creates experience, and propels innovation in the country.

"We invest heavily not financially but also with mentorship, support, and guidance in business experience to help startups succeed," Inflection Point Ventures founder CEO Vinay Bansal told PTI.

Till date, IPV has announced 55 deals and these include names like MilkBasket, BluSmart, Otipyby Crofarm, TrulyMadly, Samosa Party, and Multibhashi.

"Last year, we invested north of $10 million and we are looking at about $20 million this year... We remain sector agnostic and the reason is that we look to support strong management teams and strong founders running very effective and strong businesses.

"If I were to only fund one industry, then I would not be able to fund too many. Therefore, the idea is to stay sector agnostic," Vinay said.

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Focusing on trends and needs

IPV announced 30 deals in 2020, and expects to announce close to 60 deals in the current year.

IPV members invest about half a million dollars in a startup. Excluding the deals announced last year, IPV has offered exits in five startups and secured follow-on rounds at higher valuations in 10.

Vinay said IPV would focus on the trends and needs of the market, and cited examples of sectors that had seen strong growth during the lockdown.

"When coronavirus hit, we realised that delivery of essentials is going to be a larger need and so doubled down on our investments in Milkbasket, Otipy by Crofarm, and the like, and online D2C (direct to consumer) food brands. So, we identify a need and then we go back and find great startups and great founders in that area," he said.

He added that India had done phenomenally well in terms of innovation by startups in the last five to seven years.

"While we will continue to be sector agnostic but in the near term, I see a lot of D2C brands coming up with a lot of digitalisation ability for smaller brands that they can be used to reach consumers directly," he said.

Vinay added that a lot of logistics and delivery for essentials are taking shape, many agri reforms are happening. "One can see larger companies coming up, and a lot in healthtech will continue to evolve".