Piyush Kabra

Today, we are excited to share our biggest investment as Antler, in India so far. At Antler, incl. our Elevate continuty fund (Fady Abdel-Nour, CFA), we're thrilled to co-lead a $11M pre Ser A in Namma Yatri, alongside Blume Ventures Karthik B. Reddy and Google In this business, a few times in your career, you come across a truly disruptive business model that challenges the way things have been done, and extremely obsessed founders creating a culture that is so unique, you have never seen it before. When that happens, despite all the things not clear, it’s a joy to jump on board that potential rocketship. That’s what we have seen in the way Namma Yatri is being built by Magizhan Selvan and Shan M S with (a) a disruptive business model in urban mobility, rethinking how to make the life of a driver better and (b) Digital Public Infrastructure (DPI) at its heart. 46 million trips have already been completed, with >7 million registered users. For us, this is also a continuation of our commitment to investing in a future on DPI / Beckn / ONDC, started in 2022. h/t Susmit Patodia. Rajiv Srivatsa Magnus Grimeland Martell Hardenberg Teddy Himler Keerat Singh Sethi Vimal Kumar Sheetal Lalwani T Koshy sujith nair Pramod Varma

393

18 Comments

Disruption: The Key to Building Consumer Brands in India A founder's journey is akin to navigating uncharted waters, where every decision is a delicate balance between probabilities and possibilities. Sometimes, the founders are at the right place at the right time when disruptive waves are manifesting primarily in three formidable forms: regulatory, technological, and demographic. 1. Regulatory Disruption: Regulatory changes often appear as a vast blue ocean, promising untapped opportunities. Yet, one must tread carefully. The very nature of regulation implies that what is granted can be swiftly taken away. And many times, what is generally not specified also treads towards an eventual "No." 2. Technological Disruption: Technological advancements offer a compass for our voyage. Leveraging emerging technology platforms to create breakthroughs can unlock tremendous growth. 3. Demographic Disruption: India, a nation teeming with youth, stands at the precipice of never before seen disposable income that can be monetised digitally at scale. By meticulously segmenting markets, one can craft products and services that not only sell but seamlessly integrate into the lifestyle narratives of the emerging consuming class. At Endurance Capital, we work with early stage founders to be leaders in India's consumer revolution. As founders, the opportunity is immense. It's time to disrupt the old guard and innovate with an India-first approach. Let's craft consumer brands that aren't just loved but become a legacy for the generations to come. 🚀🇮🇳

13

1 Comment

Thanks Bismah and Inc42 Media for the insightful coverage and deep dive into the vital role of operator VCs! Bismah's thoughtful analysis underscores the growing need for operator VCs in today's startup landscape. As an operator VC , I've witnessed firsthand how founders increasingly value more than just capital. They seek partners who bring operational expertise, strategic guidance, and an extensive network to the table. These elements are crucial for driving sustainable growth and navigating the complexities of scaling a business. At GrowthCap Ventures , we understand the unique challenges faced by early-stage startups, which is why we prioritize offering not just funding, but also hands-on support and access to our extensive network. Together, we're empowering founders to realize their vision and build transformative businesses. #OperatorVC #StartupEcosystem #Gratitude

42

2 Comments

Country Delight is one of the fastest & fewest Indian D2C brands to >2x valuation every ~1-2 years. How? Country Delight (CD) in 2024 raised ~₹160 Cr in Series E. It initially had a successful PMF, growing bootstrapped for its first 4 years without funding • Valuation jump - Series C Nov'21 : ~$94 MM Series D Mar'22 : ~$428 MM Series E Jan'24 : ~$790 MM . How? » By turning into a Free #Cashflow Machine (-ve WC biz). Somewhat like the retail-tech behemoth Apple! • In the last 8 years - 1.) Average cash collection time from customers has fallen from ~66 days, to just <10 days (mostly pay in advance) 2.) How long do they pay suppliers in? From >10 days in 2017, to ~25-30 days today. 3.) Average cash conversion cycle has gone from >45 days in 2015, to less than ~1 day today. ✓Result? Operating Cashflows >>> Profits » Cash on the books explodes - From ~₹12 Lakhs in FY'17, To over ~₹484 Crores in FY'24! World's "Highest Customer Retention" within D2C? ✓ Dairy category. Almost ~70% of all CD customers acquired ~3-4 years ago give nearly the SAME revenue, EVERY month consistently even till today. New customers add on to these, as CDs marketing spends in last couple of years grew ~5x, simultaneously exploding the free cashflows flywheel. In addition, Cross sell & Up-sell of "high gross margin" newly added products (~60% success rate) like ghee, paneer, vegetables, essentials, etc. In this model "owning customers long-term" gives - ✓ Highest LTV, Lowest CAC, Highest ROCE. Amidst giant peer brands like Amul and Mother Dairy that handle close to ~45M litres / day.. • Country Delight carved its "premium niche" from scratch - Growing ~1.5-2x YoY - From ₹0 to ~₹1380 Crores revenue in last ~8-9 years! - More than 15M deliveries per month - Network of 10,000+ Indian farmers, lakhs of cattle. One of my favourite quote, by the Founder - » Animals are the best non-depreciable assets because they only multiply ;) #india #business #startups #technology #consumer

434

32 Comments

While global capital is good for Indian ecosystem, IPOs are inherently bad for a common retail investor. I am giving a contrarian view from the one shared by Gokul. Ben Graham, the father of value investing, once said, "An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative." Firstly, IPOs are not different. The psychologists Daniel Kahneman and Amos Tversky have shown when humans estimate the likelihood or frequency of an event, we make that judgment based not on how often the event has actually occurred, but on how vivid the past examples are. We all want to buy “the next Microsoft”—precisely because we know we missed buying the first Microsoft. But we conveniently overlook the fact that most other IPOs were terrible investments. You could have earned that $533 decillion gain only if you never missed a single one of the IPO market’s rare winners—a practical impossibility. Normally any company coming to the market to raise capital will paint a beautiful picture about its business because it needs money. More often, the IPO proceeds do not go into the company but rather an exit route to the existing anchor investors. Secondly, valuations do not offer "Margin of Safety" to a retail investor. During the time of an IPO, when a company sells shares to the public, it aims to secure the highest possible price for its original investors and risk-takers. Consequently, most IPOs are launched during bull markets when prices are elevated and overly optimistic investors are willing to pay premium prices for stocks. Thus, promoters and anchor investors of the company prefer to dilute their stake when they are hopeful of getting a handsome price for their shares due to bullish market conditions. This further leads to some unscrupulous managements to come out with IPOs to cash in on the current IPO boom and take advantage of investor greed. In fact, for every IPO that comes out, the sellers create the timing and there is a lot of action promotion and roadshow involved. This happens because when investors profit from a few IPOs, they start to view all IPOs as lucrative opportunities, even those of lower quality. This herd mentality leads to a frenzy where investors blindly chase IPOs, creating significant demand and causing them to become oversubscribed. This imbalance between demand and supply can lead to initial profits for investors due to favorable market conditions. However, once the initial excitement fades, the prices of many of these IPOs often decline. With India's Market Cap to GDP crossing 150%+, the bull market will eventually top out. IPOs can be shiny, but don’t forget your homework—glitter isn't always gold!

3

1 Comment

🚀 D2C startups must actively manage which legacy companies can be the natural acquirers of their business. While IPO 📈 is certainly an exit/liquidity route, for D2C brands, the legacy FMCG companies 🏢 are an equally attractive one. As an investor 💼, I always keep an eye on whether the founders are actively managing these relationships 🤝. A complementary product portfolio 📦 to that of legacy companies certainly helps. some acquistions (both new age D2c + others) by incumbents are as following: Unilever (HUL): Indulekha, VWash Marico: Beardo, Just Herbs, True Elements, Plix ITC: Sunrise Foods, Mother Sparsh, Yoga Bar Dabur: Fem Care Pharma, Everest Beverages, Badshah Masala, Baidyanath Ayurved Emami: Kesh King, The Man Company, Brillare Science, Dermicool Godrej (GCPL): B-Blunt, MyGlamm #startups #d2c #founders

16

1 Comment

Ever wondered how top companies really fill their positions? The answer might surprise you. 💡Leading firms fill over 95% of roles internally!!!! In this week's #WeekdayWorks podcast: - Why external hiring often signals poor succession planning - How India's booming economy (8.3% growth!) is reshaping hiring strategies - The secret radar for high-potential employees - When companies go to the market for talent From corporate expansion to internal mobility, we're diving deep into the art and science of sourcing top talent. 🎧 Tune in for expert knowledge on more such industry insights. The episode release on 31st August 6:30 PM. #hr #hiring #resume #job #interview

44

1 Comment

Ever wondered how top companies really fill their positions? The answer might surprise you. 💡Leading firms fill over 95% of roles internally!!!! In this week's #WeekdayWorks podcast: - Why external hiring often signals poor succession planning - How India's booming economy (8.3% growth!) is reshaping hiring strategies - The secret radar for high-potential employees - When companies go to the market for talent From corporate expansion to internal mobility, we're diving deep into the art and science of sourcing top talent. Episode - https://lnkd.in/gq3XAUgd #hr #hiring #resume #job #interview

50

2 Comments

Kabhi Revenue Kabhi EBITDA? Yesterday the Dharma Acquisition by the Poonawala family ignited a curious question amongst Media founders exploring M&A - 'Why was Dharma acquired on Revenue Multiple & not EBITDA?' → Traditionally you see, most Media deals happen on either - • 3-8x of EBITDA OR • 1-2x of Revenue Ofcourse, filled with exceptions. The only companies where a Revenue Multiple is entertained is where the company has great moats, defensibility & sustainable IPs to back themselves. → Does Dharma have any sustainable moats? A big YES! (1) Existing Movie Business - Ofcourse the existing movie business will go as it is & I'm assuming will get more streamlined with good corporate zing. - Enhanced focus on Bottomline & not spending exhorbitant amount on mindless movies & webshows. (& promotions) (2) Monetising Existing IPs - Dharma has some of the best older movies in its kitty with excellent recall value. - Their new set of IPs too have found a set of viewers (Bollywood wives, Tribe etc) Love watch it or Hate watch it, but you watch it anyway xD (3) Talent Management Wing - Not sure if the Talent Management Wing is included in this deal, but could be an interesting add on. • The Dharma deal, happening at 2x of Revenue is a good case study for any Media company imagining a 10x 'Revenue' Multiple! Overall just validates that consolidation is due in Media, be it India or globally. Done Deal Rohit | Aneesh | Shubhang | Gaurav | Neha #india #business #media #mergers #acquisitions #economy #startups #movies #cinema

77

4 Comments

📚 Just finished reading "From Pony To Unicorn: Scaling a Start-Up Sustainably" by Hari TN and Sanjeev Aggarwal 🚀 This book is a treasure trove of insights, learnings, and anecdotes about the journey of building a start-up. It highlights the strategies that lead to success and navigates the pitfalls entrepreneurs often face. What captivated me most were the numerous examples of Indian companies and entrepreneurs, making the read especially relatable and engaging. Here are a few key takeaways: 📌 Integrity and Competence: The best companies are run by men and women of unquestionable integrity and competence. Integrity is paramount; it is the first thing an entrepreneur should have, guiding every decision and action within the organization. 📌Sustainable Market Practices:  Markets built on sheer discounts are unsustainable. Long-term success requires creating real value rather than relying on temporary pricing strategies. 📌Problem-Solving Tenacity:  Solving complex problems demands perseverance, patience, and a willingness to take risks. What might help a startup grow from point A to point B might not necessarily help them grow from B to C. Continuous adaptation and innovative problem-solving are essential for each stage of growth. 📌Growth vs. Valuation: The book cautions against the influence of overvalued private companies. Entrepreneurs should resist the temptation to sell their own stock for quick profits and instead focus on sustainable growth rather than chasing high valuations. 📌Choose Investors Wisely: Successful companies comprehend that reaching significant milestones, like scaling, demands bringing key stakeholders on board. Selecting the right investors is crucial; they aren't merely a source of funding but also provide support, network access, and influence. 📌Focus on Customer Needs:  Understanding and prioritizing customer needs is crucial. Building strong customer relationships and delivering consistent value drives loyalty and growth In conclusion, the book stands as a remarkable first principles book. I highly recommend it to those envisioning to build in India, offering invaluable insights into the nuances of scaling startups for this dynamic market.! 🦄 #StartUp #Entrepreneurship  #BusinessStrategy #Leadership #Innovation #India 

46

6 Comments

Announcing the next big conversation at the D2C Unlocked Delhi-NCR chapter 🗣️🎤 Join Arush Chopra, Co-Founder of Just Herbs, and Manu Chandra, Founder & Managing Partner of Sauce.vc, as they dive into the topic: 𝐈𝐏𝐎 𝐨𝐫 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐀𝐜𝐪𝐮𝐢𝐬𝐢𝐭𝐢𝐨𝐧: 𝐓𝐡𝐞 𝐄𝐧𝐝 𝐆𝐚𝐦𝐞 𝐟𝐨𝐫 𝐃2𝐂 𝐛𝐫𝐚𝐧𝐝𝐬 Arush brings to the table his firsthand insights from steering Just Herbs through this pivotal chapter of the Marico partnership, meanwhile, Manu enriches discussions with a comprehensive understanding of the D2C ecosystem, drawing from Sauce VC's investments in pioneering brands like XYXX Crew and The Whole Truth Foods. The conversation, “IPO or Strategic Acquisition: The End Game for D2C Brands,” is more than just a debate—it’s an in-depth examination of what the future holds for D2C brands. What's the secret sauce for D2C brands to flourish in today's market? Is going public the ultimate goal, or are partnerships a smarter move? Inviting all D2C Founders/CXOs in Delhi-NCR to join us on April 25th, 2024, at 6 PM for an exchange of ideas that’s as thought-provoking as it is insightful. D2C Unlocked is presented by Simpl and powered by Affinidi, AdYogi, & Shipway. See you there—let’s fuel the buzz! Register : https://lnkd.in/gAabp73G

65

8 Comments

Loved sharing my thoughts with some super enthusiastic students at Jindal Global Business School (JGBS) … → We talked about important things like -- setting up a business from scratch + raising capital + early challenges + discussed the nuts & bolts of our Same Day Delivery business at Zippee. → Ofcourse, I had to stress on the importance of -- taking risks–– NOT just in college-- but also by piloting a business alongside college [side hustles are very important &t that was my playbook]. I truly feel - Those 3 or 4 years of college are GOLD — & most students don’t know how to mine this gold….they have a chance of doing some very interesting internships, projects, startups in these years. [while these businesses may or may not take off - but the learning curve is steep & prepares the students for the REAL LIFE ahead]. You can be On-campus or Off-campus, or even in a remote city in India - there are enough & more opportunities out there to start small & remotely from wherever you are - all you need is your phone/laptop with an active internet connection + THE INTENT TO DO SOMETHING. IMO, the biggest problem in India = Graduates take another ~3-5 years after college, to ‘learn the basics’ [soft skills too] & it takes them those many years to figure out ‘what next’ too… both these challenges can easily be addressed in parallel alongside college. Building businesses isn’t easy & there’s never enough time for everything that a founder has to do everyday - but here’s why I love speaking to students & agree to do these sessions occasionally: I had believers who selflessly supported me in my early days, & while I can't pay it back to them in anyway — it’s my responsibility to pay it forward in the ecosystem & help folks cross their 0-1 bridges. A big shout out to Dr. Sahana V Rajan Assistant Professor & Associate Dean at JGBS–– for stitching this up. #Early #College #zippee #SideHustle

51

2 Comments

Excited to see Zippee recognized by Redseer in its "State of D2C in India" report 🚀 When one of India's top strategy firms lists us as the only key player in Same-Day Delivery logistics, it takes me back to the core insight we started building on in 2021: • Post-COVID, Indian consumers don't want to wait 3-7 days for their ecommerce shipments, especially when marketplaces & quick commerce giants have spoilt them with 10-min/same-day/next-day delivery offerings. However, the intricate logistics & tech infra for such operations are complicated, & D2C brands are struggling to keep up. Shoutout to our incredible team and partners across 10 cities. We've got miles to go & remain laser-focused on solving pressing pain points for India's 100,000+ Ecommerce brands. #SameDayDelivery #D2C

126

2 Comments

Our first VC AMA! So excited to have Sajith Pai, Partner at Blume Ventures on Grapevine today I've been reading Sajith's notes for some time now. I got some of my earliest (read: formative) wisdom on PMF, books to read, raising funds, among other things from these notes. They can be found over at http://sajithpai.com Ask away your Startup/Founder/VC queries to Sajith at 7 PM I know what I'm going to ask him :))

35

1 Comment

Taking the Calculated Leap: Why Fear Shouldn't Hold You Back As the Co-founder of Slate Labs, I often come across a fascinating paradox. Many people in India are willing to dedicate years and significant resources (coaching, study materials) to the highly competitive and low-probability pursuit of cracking the UPSC exam for a shot at the IAS. Yet, the same individuals hesitate to invest similar time and effort in exploring new business ventures, where the success rates can be demonstrably higher. This begs the question: Why are we so comfortable with the familiar struggle and so apprehensive of the calculated leap? There are several factors at play: #Fear of the unknown:Starting a business is venturing into uncharted territory. The comfort of a well-defined path, like the UPSC syllabus, can be appealing. #Societal conditioning: Our education system often emphasizes traditional career paths, leaving us less prepared to navigate the entrepreneurial landscape. #Aversion to risk: The potential for failure looms large in our minds, overshadowing the possibility of success. Here's the counterpoint: #Calculated risks: Entrepreneurship isn't a blind leap. It involves research, planning, and calculated risks. The skills honed through this process are valuable regardless of the outcome. #High growth potential: Businesses, if successful, can generate significantly more income and impact than most traditional jobs. #Personal fulfillment: Building something from the ground up and creating value can be incredibly rewarding. The takeaway? Don't let fear paralyze you. While the UPSC path has its merits, consider the potential of calculated risks in entrepreneurship. Upskilling and exploring new avenues like tech can be a stepping stone to building a fulfilling and impactful career. Are you ready to take the leap? Let's chat in the comments! #entrepeneruship #upsc #careerdevelopment #india #startups #calculatedrisks #SlateLabs

9

1 Comment

Blume Ventures Podcast - Season 3 - Winning across Boundaries Episode 2 - Mahesh Bhupathi In this less than an hour rendezvous, Karthik B. Reddy seeks to extract the secret sauces from Mahesh's journey as a sportsperson for the founder community. You get to know that one of India's tennis legends hardly lived or lives in India but brought laurels for the nation by winning grand slams with varied tennis court partners. Thoughts which stayed with me post watching: 1. Success in any field requires obsession 2. You need to be surrounded by people who push / motivate you to your goal 3. To be wordclass one needs to be exposed to the best - there are no shortcuts 4. Adaptability with different partners (read co-founders) 5. Importance of a coach vis-a-vis a mentor - friendship with both is important so that the other person knows when to and when not to connect / drive a point 6. Last but not the least - Discipline and practice makes you perfect Enjoy listening to someone who does not do interviews / podcasts often Blume Ventures https://lnkd.in/dGpv7GXF

2