The conversation around start-ups for most of the past couple of years has been about the funding winter and how venture capitalists have become obsessed with seeing a path to profitability before investing. But quietly, another trend is building up in the space—that of well-known secondary market investors taking a keen interest in these ventures. Away from the public markets, a clutch of India’s better-known secondary market investors is investing in the unlisted space in the hope of finding interesting start-ups. These D-Street veterans are some of the most astute investors who are on the hunt for investment opportunities outside the listed space, to get smart returns whenever these start-ups get listed or when valuations go up and they want to exit.
In our cover story, Rahul Oberoi decodes the investment philosophy of these investors—who we’re calling the D-Street Angels—and why they are choosing to invest in the start-up space despite the risks. Names like the Jhunjhunwala family, Vijay Kedia, Ashish Kacholia, Ashish Dhawan, and Ambareesh Baliga are putting in good money into select start-ups. Often, these can give outsize gains and there is potential for substantial returns—sometimes even more than secondary market stocks or real estate. “If the venture becomes successful, it may deliver 100x or multi-fold kind of returns. That is why I invest in start-ups,” Kedia tells BT. The value of his investment in cybersecurity firm TAC Infosec soared when it listed at a staggering 174% premium recently. Ashish Kacholia’s `50-crore investment in shared office space company Awfis also shot up to `150 crore on listing last month. As more start-ups grow and tap the public markets, these D-Street Angels will always be on the hunt.
This issue also has our annual special report on sustainability. Nidhi Singal and Richa Sharma bring you the details on how India Inc. is faring, the emerging regulatory ecosystem, the funding gaps and emerging trends. While there’s lots of ground left to cover, the good news is that Indian companies are realising that sustainability strategies are also good for business, with a SAP study showing 77% of firms surveyed saying they see sustainability contributing to revenue and profit growth.
Meanwhile, India’s corporate and business circles were glued to their TV screens as the results of the 2024 General Elections played out on June 4. With the ruling BJP short of a majority on its own, it will be dependent on two key allies—N. Chandrababu Naidu’s Telugu Desam Party and Nitish Kumar’s Janata Dal (United)—for support. Surabhi explains what this means for Prime Minister Narendra Modi’s historic third term and how things could play out. Typical of the stock market, it crashed on results day but recovered the next day when it became clear that despite the lower numbers for the BJP-led NDA, there would be broad policy continuity. That’s what market and corporate circles would be looking forward to.
