Mumbai Angels, the leading platform for early-stage venture investments, expects to more than double the funds deployed in start-ups in this fiscal. This is even as the start-up ecosystem has been coping with challenges in raising funds. The angel network, which is now part of wealth and alternates-focused asset firm 360 ONE, expects to strike funding deals worth ₹200 crore in this fiscal.
The platform deployed investments of over ₹80 crore in more than 66 deals in the previous fiscal with an average deal size of ₹1.2 crore. In January, it launched an angel fund and a venture capital fund.
Nandini Mansinghka, CEO of Mumbai Angels told businessline, “We expect to deploy about ₹200 crore in about 100 deals. Our sweet spot is anywhere between ₹1- 3 crore per deal and the average deal size will continue to about ₹1-2 crore.”
Impact of funding winter
Responding to a query on the impact of the funding winter, Mansinghka said, “I believe there is no funding winter at the stage where we operate. I believe it’s a function of how much money a start-up is raising and at what stage the investors are coming in and we usually come in as the first external investors. The good thing that has happened is that investors have begun asking different kinds of questions such as the founder-market fit, reasons the start-up is raising funds, how the funds will be used, and if there is a real business model.“
Key investment areas and emerging opportunities
Some of the key areas where the platform has invested include education, F&B, technology, consumer, and finance. It has also invested in the EV industry besides other segments such as logistics, legal, and HR.
“We are really excited about the potential offered by segments such as space-tech, defense-tech, green-tech, and agri-tech. We have also begun seeing new opportunities in space such as sports-tech among others. In the consumer space, we have begun seeing start-ups focus on niche products and spaces that are looking to leverage on higher disposable incomes,” Mansinghka added.
Strategic investors
The platform has also made six exits including Pickright and Minkspay in the last fiscal. Meanwhile, over 40 start-ups in the portfolio of Mumbai Angels raised additional rounds of funding totaling to over ₹550 crore.
“In the last few years, we are seeing mergers & acquisitions happening and strategic investors are coming in to buy smaller companies. This wasn’t happening, let’s say, five years ago, as strategic investors were not seeing the value in buying smaller companies. So, a large part of exits for investors is now happening due to strategic investments. This is a good outcome and a sign of maturity,” explained Mansinghka.