Titan Capital, a seed-stage fund house founded in 2011, has invested in over 280 companies. The company only deploys its founders’ capital. Notable investments include Mamaearth, Ola, Razorpay, Urban Company, Shadowfax, OfBusiness, Giva and Credgenics. The co-founders, Kunal Bahl and Rohit Bansal, say they differentiate themselves in the venture capital landscape by identifying and investing in start-ups with a small market presence and a potential to generate strong unit economics. Edited excerpts from an interview:
What is your investment thesis?
Bahl: Titan Capital is not sector-specific. It focuses on technology-enabled businesses, typically in one of five areas: B2B (business-to-business) or B2C (business-to-consumer) marketplaces, fintech, SaaS (software-as-a-service), consumer brands, and logistics. Our experience in building businesses within these sectors enables us identify potential blind spots.
What do you look for in a company before investing?
Bansal: Titan Capital looks for founders with strong leadership qualities and a track record of excellence, which is crucial because entrepreneurship is challenging and demands resilience and intensity to succeed. We look for companies that offer market opportunities with interesting entry points, along with strong unit economics. This means the business should have well-defined gross margins and a clear profit-and-loss structure that gives us confidence in its ability to achieve profitability at the unit level. Additionally, we assess whether the company can become an ‘indicorn’ — generating ₹100 crore annual revenue — within 3-5 years.
How many funding proposals do you get in a year?
Bahl: Titan Capital receives around 5,000 proposals from founders each year. We invest in 10-15 companies annually.
What is your exit strategy?
Bansal: Our approach to exits is quite differentiated. Since we invest our own capital, we take a truly long-term view; hence there is no fixed exit horizon, as we focus on company building, much like the founders themselves. While exit opportunities naturally arise, we are comfortable holding on for even longer, if needed. Our goal is to build a thriving business rather than chase a quick exit.
What is your approach to governance requirements in the startup ecosystem?
Bansal: The firm places a strong emphasis on governance from the beginning. Many people believe governance is relevant only for large companies, but it’s essential even in the early stages because it fosters trust with stakeholders — whether they’re employees, partners, shareholders, or investors. The goal is to instil a culture of governance in financial management, operations, hiring, and auditing from the outset, ensuring that, as the company scales, it has solid foundations in place.