Unitus to explore investment in Gujarat start-ups

Fund will be investing around Rs 50 lakh to Rs 1.5 cr

In a bid to tap the growing start-up scenario in Gujarat, US-based Unitus Seed Fund, operating from Bangalore is on a visit to the state and is exploring around 30 start-ups in the healthcare, education, clean energy and agriculture sectors.  The fund will be investing anywhere around Rs  50 lakh to Rs  1.5 crore in each start-up that it zeroes in on for a period of 5-8 years.

At an invitation from The Indus Entrepreneurs (TiE) Ahmedabad chapter, Unitus Seed Fund will be exploring opportunities among start-ups working for the base of economic pyramid (BoP) in and around Ahmedabad.  According to Neha Sheth, president of TiE Ahmedabad, the visit was arranged for TiE community who are raising seed funding.

With a corpus of Rs 7 crore, Unitus Seed Fund intends to make seed-stage venture investments in ‘BoP startups’. Unitus Seed Fund specialises in investing in startup businesses which are primarily focused on serving very large, underserved low-income populations in India.

These startups deliver quality, affordable products and services and/or create new or improved livelihoods opportunities.

“The startups should be serving large, underserved low-income populations. Our portfolio companies have high-potential for scale, profits, and built-in positive impact for the one billion people in India living at the base of the economic pyramid (BoP). We accelerate the growth of these early-stage businesses by providing funding, support, connections, and support in raising growth capital,” said Will Poole, Co-Founder & Managing Partner, Unitus Seed Fund.

According to Poole, while the typical investment in start-ups in and around Ahmedabad would be around Rs  50 lakh to Rs  1.5 crore, the fund would stay for anywhere between 5 years and 8 years.  

“Since we are a for profit fund, we require the investee companies to be valuable and scalable,” Poole added.

Since January 2014 the fund has made around 10 investments in start-ups such as Caravan Craft, Commerzpoint, Gocoop, Istar, Milaap, Smile Merchants and Welcare, among others.

Among its criteria for seed equity investments in capable entrepreneurs and start-ups include experienced management team, potential for serving up to 100,000 low-income families within 5 years, business developed beyond the concept stage, clearly differentiated value proposition and strategies to build effective distribution and marketing programs.

Meanwhile, once invested in start-ups in and around Ahmedabad, Unitus Seed Fund will prepare early-stage businesses for accelerated growth by providing strategic capital, support, and connections to help entrepreneurs validate and refine their business model, product-market fit, operational strategies, governance, and plans for scaling up.