Myntra’s co-founder Raveen Sastry, former President of Paytm and ex-top executive of Alibaba Bhushan Patil and ex-GM at GE & former Senior Director of Flipkart Sanjay Ramakrishnan have joined hands to start Multiply Ventures, a ₹350 crores ($50 million) venture capital fund.
The venture fund is focused on investing in early-stage startups – preferably in Pre-series A and Series A rounds of startups from segments including retail, edtech, and fintech. Out of the ₹350 crores fund, the firm has already received commitments for about ₹70 crores ($10 million) from colleagues of the three co-founders.
Myntra’s co-founder Mukesh Bansal, Paytm’s co-founder Vijay Shekhar Sharma and Zeta Interactive’s CEO David A Steinberg have committed to invest in the venture fund. However, the trio is looking to bring in more investors from the US and China. Mr. Patil has worked in China for five years and has many connections in the country.
Sastry and Ramakrishnan have also invested in several startups like Open Financials, Mini, Gramophone and Mad Street Den in their personal capacities. Patil has worked with Paytm as President until last month when he quit from the cashback startup. Multiply Ventures was founded 3 months ago in March and are screening startups throughout the country to make its first potential investment.
This is not the first time when co-founders of existing startups have come together and founded venture capital firms. There are several examples like Tanglin Ventures, 021 Ventures, BAce Capital and more which has been founded by ex-executives of top startups in India. In the past year, there have been several incidents as the number of secondary deals and ESOP encashments increased.