Finding next generation soonicorns

Founded in late 2021 by Aryaman Vikram Birla and backed by Aditya Birla Group, Aditya Birla Ventures invests in new-age leading businesses of tomorrow demonstrating growth potential and resilience

There are two sets of narratives floating in the market today in the context of India's startup economy. One highlights how India is home to one in every 10 unicorns, making it the world's third-largest startup ecosystem. Supplemented with projections indicating a steady annual growth rate of 12-15%, it emphasises that this is just the beginning of India's journey to becoming the next global startup hub.

The other is more scrutinising in nature. It is primarily centred on the recent reboot of the startup ecosystem. In 2021, India added 44 new unicorns, and in 2022, another 23 made it to the list. However, it soon gave way to a funding winter.

After a period of flush funding, hypergrowth, and valuations, the Indian startup economy is now prioritising fundamentals, governance, and real valuation metrics. The search is now for 'cockroach startups'. Although the word 'cockroach' often stirs up an icky feeling, in startup parlance, the term is associated with a business that is not only resilient and frugal but can also survive the toughest of operating conditions. Given the volatile market conditions, the aim of investors now is to find a soonicorn in the disguise of a cockroach!

Building on the entrepreneurial momentum within the country, Aditya Birla Group made a strategic move in 2021 by launching Aditya Birla Ventures. Under the leadership of Aryaman Vikram Birla, the firm set its eyes on investing in new-age businesses across a diverse range of sectors — from consumer tech to fintech, B2B commerce to healthtech, SaaS to consumer products. It actively scouts for ventures with exceptional growth prospects, by investing in them at an early growth stage itself.

Apart from financial investment, Aditya Birla Ventures aspires to leverage the Group's global ecosystem, wealth of experience, and industry relationships for the growth of its portfolio companies.

Entry into a growing market

With the Indian startup ecosystem still in its nascent phase, Aditya Birla Ventures has strategically adopted a sector-agnostic approach to successfully capitalise on growth opportunities across markets.

While scalability, robustness of the business model, and unit economics are undoubtedly some of the most crucial criteria for evaluating early-stage growth companies, Aditya Birla Ventures goes beyond traditional metrics. Drawing from the core values of Aditya Birla Group, it places a strong emphasis on innovation and integrity, actively seeking out founders with exceptional capabilities and extraordinary vision.

In its journey of less than two years, Aditya Birla Ventures has already invested in several high-growth startups spanning various sectors. Some notable startups in its portfolio include e-commerce solution provider Dukaan, digital credit infrastructure company Finbox, health-tech provider Eka Care, and fine silver jewellery brand Giva, among others.

Each of these businesses has shown commendable resilience and growth in turbulent market conditions and is a leading player in its domain. For instance, Eka Care is building a digitally enabled and connected healthcare ecosystem focused on better health outcomes. It is one of the top three patient healthcare apps in India. FinBox is a low-code credit infrastructure company enabling banks and NBFCs to launch embedded credit products. Dukaan is a DIY platform that enables merchants with zero programming skills to set up their e-commerce store using a smartphone. Giva, on the other hand, is a leading jewellery brand focused on affordable fine silver jewellery for Indian women.

Firmly rooted in its mission of supporting indigenous ideas and showcasing the brilliance of Indian innovation on the global stage, Aditya Birla Ventures has eagerly embraced its role as a catalyst in the country's dynamic startup landscape. Recently, Aditya Birla Ventures was accorded by Indian Venture and Alternate Capital Association (IVCA), the apex industry body for alternative assets in India, with the 'New Fund Entry – Outstanding Achievement of the Year' award at its annual conclave held in February 2023.