Money is available to startups, need to tap the right pool: Refex MD
Refex MD Anil Jain asked startup founders to shed their inhibitions in asking for capital from anyone for their business.
Anil Jain, Group Chairman and Managing Director of Refex, believes there is no dearth of capital for startup founders even in the present funding winter environment; it is just a question of tapping into the right pool of money.
“If the thought process is clear, then getting money is never a constraint as there are various forms of getting it,” Jain said during a fireside chat at Tamil Nadu Story 2024, YourStory's flagship event, in Chennai.
The entrepreneur, who runs a diversified business group, encouraged startup founders to shed their inhibitions of asking for money from anybody. He recounted his over two decades worth of experience, where he would be open whenever there was a requirement for capital—from banks, friends or investors.
Chennai-headquartered Refex Group has diverse business interests, including renewables, chemicals, medical technologies, pharma, green mobility, ash handling, and airport operations.
Jain is also an investor and has his own fund. He has invested in 30 startups to date.
The top priority for Jain when it comes to investing is always the commercial aspect of any venture. “If you don’t make money, then one cannot grow,” he said.
He believes money is available to the startups, but they should deliver on the performance benchmark, adding that scaling a business is very important.
When an audience member asked how founders can scout good mentors, Jain candidly said it is a glorified concept. “One needs to pick the right things from different kinds of people.”
Jain's entrepreneurial journey over the last two decades had its challenges. In 2002, he started his business in the field of refrigeration and gas business and faced the obstacle of not getting a license.
His sheer perseverance led him to successfully build the business and list on the Indian stock exchanges in 2007. However, he also faced near bankruptcy as the acquisition of an overseas business did not go as planned.
“Even when I restarted literally from zero, we never lost hope,” Jain remarked.
He believes that the success of any business organisation lies in sharing the vision with the employees and how they can put their thoughts into action. Jain said there is nothing like a good business to get into, and what matters is the drive to make the best out of any venture.
The Refex Group Chairman has been entrepreneurial since his school days and was running a part-time business when in college.
On the business environment in Tamil Nadu, Jain said, “There is a lot of positive energy here, and everyone is down to earth.”
(The copy was updated with a correction.)
Edited by Suman Singh