Bhavish Aggarwal

Indian venture market has exploded. Someone reported that there are 800+ funds/networks/syndicates/ accelerators active in Indian venture market now. Not sure, if that number is correct but if you are an early stage tech founder on your fundraise journey, chances are, you would meet hundreds of people. While majority of the fund houses are doing incredible work and shaping the ecosystem. There are certain kinds of investors you need to identify & avoid to save time and stay focused: Sharing from my personal experience, top 5 such cohorts to avoid and the takeaways for the founders: 1. Data collectors: At early stage, you don't have historical data to present. Your projections are just that, Projections. I wasted one whole week discussing with a prospective angel investor on why the CLTV to CAC ratio is x, and not y. Takeaway: Discuss high level strategic numbers only without going into the details. None of the projections would be accurate anyway when rubber hits the road. 2. Document collectors: Met few folks, who would watch from the fences and ask for n number of documents, data rooms, statements without sharing the purpose of the ask or even revealing their investment intent. Takeaway: It is supposed to be a bi-directional conversation. Say 'no' often, till the time, an official relationship is established. 3. Valuer (! investor): At early stage, valuation is a function of multiple parameters, the opportunity itself, the team, or anything else except steady cash flows, because you don't have much. I wasted another week with a prospective investor trying to justify valuation, had to shut down that conversation, after both of us started quoting Aswath Damodaran and his valuation principles. Takeaway: Too much content on the internet for both parties anyway. Shouldn't be a bone of contention at early stages. 4. Facilitators posing as investors: Met numerous people, who would go to any lengths to pose themselves as serious investors, even buying paid media articles. Only to reveal at the last: The success fee. Takeaway: Avoid facilitators until Series A 5. Brokers posing as market makers: People posing as market makers sharing tons of gyaan on LinkedIn but are actually deal brokers looking to make quick %. Personal experience: Two rounds of conversation happened and then out of blue, they added a third party in the mail trail, someone who facilitates mergers & acquisitions. There wasn't even a single instance in the past conversations where we indicated any such intent. Takeaway: Avoid name & shame in public but at least share within founder communities. #venture #fundraise #startups #investing

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Q-Commerce overtaking traditional e-commerce? Currently we are seeing a big boom in terms of the different SKUs being sold in Quick commerce apps like Zepto, Blinkit, etc. - Atomberg Technologies 's fans - Sony's PS5 - Samosa, Chai and what not - Digital Gold from Jar! Zepto is in talks to raise $300m for its broader ecommerce play. While Swiggy is preparing to file for an IPO this year, incumbent Flipkart is readying its entry into quick commerce. Zomato has invested $240 million in Blinkit over the last one year. Taking a step back, the lines between quick commerce and traditional e commerce have started to become increasingly blurred with QCom pretty much catering to every needs! Also, multiple reports suggest that QCommerce can potentially become bigger than traditional e commerce in India!  Case in point : According to Goldman Sachs, the valuation of Blinkit is greater than Zomato's core food delivery biz! Non-grocery boom in Q-Commerce: Categories including beauty, toys, health and electronics are witnessing robust sales growth on quick-commerce platforms overall. While the overall base for the new categories is still small, aggressive expansion by these players is starting to ensure a dominant presence for these categories. Plus AOV is higher which also comes with better margins, making it a win-win! Case in point: Zepto - 2x sales MoM in segments such as toys and electronics accessories - Beauty category expanded 3x QoQ - ~15% of Zepto’s $1.2bn annualised gross sales currently comes from non-grocery products (Source: Goldman Sachs) For several D2C quick commerce has become the fastest growth channel as well as the platform with highest customer engagement This is definitely a positive for the consumers and the Q-Commerce players, but is everything on the up and up?   As the demand for space on quick-commerce platforms skyrockets, niche D2C cos in segments like FMCG, beauty and personal care, and health and fitness are agreeing to pay a 30-45% commission on sales, besides shelling out on advertising and discounting on these Q-Com platforms. On top of the commissions, brands are also regularly spending around 20% of their total sales on ads on the platforms, and discounting their products by about 20-25% (totaling 60-70% revenue!). This is in stark contrast to the 10-20% commission that large FMCG cos pay these platforms reflecting the intense competition for visibility. The brand's scale and comparison with competitors are crucial considerations when it comes to new listings. On the positive side, smaller D2C brands have seen 40-60% total revenue coming from Q-Commerce compared to ~10-20% from traditional ecommerce, which is surprising! Essentially, Q-com currently has a BIIIG Bargaining power against new D2C brands and can essentially make or break their businesses! Is this sustainable on the long run? #ecommerce #quickcommerce #india #zepto #businessmodel #d2c #startups #LIPostingChallenge

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Lumikai turns 4 this month! In 2020, Lumikai Fund was essentially two of us. Fast forward to 2024: Four years in, we have seen one pandemic, two global wars, one bull run, one private market bear run, average 20%+ stock market returns, and surprise bans/prohibitions. Lumikai has grown up in times of uncertainty. The fund platform has expanded from two to eleven team members with over 2,000 deals evaluated. In a new market, we were calibrated and built a tribe of 16+ portfolio companies. Now, we have been recognised as a Top 10 VC fund in the interactive media and gaming space - the only Indian fund to make it to the list. Most importantly, we have seen the Lumikai tribe of founders achieve new heights, many times despite massive headwinds. We cheered for Eloelo when it hit India’s #1 social entertainment app, All Star Games (Deftouch) Games became India’s #2 cricket sports game, and Bombay Play won Google Play’s “Best Game in 2023” across APAC region, when Studio Sirah launched India-first mid-core IP in Kurukshetra: Ascension, AutoVRse won the business of a major US tech giant from competition, and Vobble brought Peppa Pig in audio to Indian kids. Like us, many in our portfolio have had to traverse uncharted territory without any playbooks or defined paths. Bringing light to an emergent asset class from an untapped region, which now has adequate global and domestic attention, has been a work in progress. Over the last four years, we have learnt: Lesson #1: Pioneering is not just about being “the one” but for everyone. It’s not just about winning, but about sharing knowledge, expertise, and giving back to an ecosystem. Lesson #2: Sometimes, when the odds are against you, all you can do is persist and control the inputs. Lesson #3: Being non-contrarian and right is a long, hard, and lonely journey of self-reflection and introspection. Lesson #4: You overestimate what you can achieve in a day and underestimate what you can achieve in a year. Lesson #5: VC success favors the hungry, the curious, and the lucky. And many times, in the business of venture, you have to create your own luck. So, as we crystal ball gaze, here’s to more years facing turmoil and uncertainty with resilience, impact, and excellence! 🎉 May the Lumikai light continue to shine bright. 🙏 Justin Shriram Keeling I Kislay Shashwat I Aditya Deshpande I Anant Seth I Asher Siddiqui I Tiasha Guha Neogy I Nidhi Bavishi I Anahita Singh I Raghav Ganesh I Namisha Rajgarhia #LumikaiTurns4 #VentureCapital #Growth #Resilience #Innovation

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US GTM focused founders from India An important learning for me has been the need for a sound body so that there’s a sound mind, when selling to North America, during NA business hours. - Prep the body and mind for those hours (4pm - pst midnight IST) - Eat foods that agree with you and help you have optimal energy during those hours (eg I rarely start my breakfast without a good dose of dry fruits, nuts and kanji/porridge before I eat idli/dosa/etc) - Listen to your body seeking rest and give it adequate rest (like a dear friend of mine Ian Anderson would often say “don’t burn the candle at both ends”) I have felt a visible difference in my energy, mindset and focus as I progressively made these changes Often, in the adrenaline rush filled startup journey, we founders give the short shrift to our health. I didn’t realise it’s toll on me until end of 2021. Went through a fairly transformative phase during 2022. Several changes I made then have now become “habits” and hence second nature. What have you changed in your lifestyle to enable a better you?

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Thanks Bismah and Inc42 Media for the insightful coverage and deep dive into the vital role of operator VCs! Bismah's thoughtful analysis underscores the growing need for operator VCs in today's startup landscape. As an operator VC , I've witnessed firsthand how founders increasingly value more than just capital. They seek partners who bring operational expertise, strategic guidance, and an extensive network to the table. These elements are crucial for driving sustainable growth and navigating the complexities of scaling a business. At GrowthCap Ventures , we understand the unique challenges faced by early-stage startups, which is why we prioritize offering not just funding, but also hands-on support and access to our extensive network. Together, we're empowering founders to realize their vision and build transformative businesses. #OperatorVC #StartupEcosystem #Gratitude

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The e-commerce startup Meesho has raised $275 million in a new funding round, pushing its valuation to approximately $3.9 billion. This funding, part of a larger round expected to exceed $500 million, includes secondary transactions. Notable investors like WestBridge Capital and Norwest Venture Partners are participating in this round, joining Meesho's impressive list of backers, including Meta, Fidelity, Peak XV, Prosus Ventures, B Capital, and SoftBank. However, Meesho faces increasing competition, with Amazon India recently launching Bazaar, a special store featuring affordable fashion and lifestyle products. Despite this, Meesho's focus on an asset-light model and lower fulfillment charges has helped it capture nearly half of India’s annual 3PL e-logistics shipment. For the latest secondary coverage and trading SaxonWeber | ShareWell #secondaries #saxonweber

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Given the changing paradigms in technology and media, we know that the next 10 years will look nothing like the last 10 years. Thanks to The Economic Times for capturing our interactive media thesis for the years ahead. As we crystal ball gaze into the future, there has been no better time to invest in India. In the last few years, we have seen the market mature across key vectors - propensity to pay, quality of talent, capital inflows, and exits. This represents meaningful upside for founders and investors in this space over the coming decade. With the incredible shifts in tech, media and gaming, there are some exciting times ahead! 🚀 https://lnkd.in/gTfYa3Kw

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🚀 Swiggy Set to Make Waves with ₹11,300 Crore IPO: Key Details and Market Implications 🌐 Swiggy, India's food delivery giant, is set to go public with an IPO launching on November 6, 2024, aiming to raise around ₹11,327 crore (~$1.35B). Shares will be priced at ₹371-₹390 each (around $4.64), with trading expected to start on November 13, 2024. IPO Highlights: Price Range: ₹371-₹390 per share Funds Allocation: Expanding logistics and quick commerce operations This IPO is launching amidst rising tech-driven competition in India’s market. By securing capital, Swiggy plans to advance its quick commerce capabilities, aiming to gain a strategic edge over competitors like Zomato. Market Impact: Swiggy’s IPO offers a unique investment opportunity with strong growth potential, balancing between established dominance in food delivery and quick commerce expansion. Investor Insight: With a grey market premium around ₹25, sentiment is optimistic. As Swiggy steps into the public sphere, it's poised to redefine India's fast-paced delivery ecosystem. #IPO #SwiggyIPO #Investment https://lnkd.in/eyHRRPXh

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If you want to understand more about the Indian startup and venture ecosystem, then the best place to start is the "Indus Valley Report" by Sajith Pai, Anurag Pagaria and Nachammai Savithiri R of Blume Ventures - https://lnkd.in/gj-7hjGq You can expect lots of insights about India's GDP, consumption by different types of customers in India, Digital Infra achievements, venture funding trends, Indian IPO market, and Indus Valley Playbook. My favorites in 2024 report 1. India123 - Slides 26-30 2. Storefront as a Service for Digital Native Brands - Slide 101 What do I expect in the 2025 report : How Indian startup and venture ecosystems are powering global Gen AI growth !!!

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Country Delight is one of the fastest & fewest Indian D2C brands to >2x valuation every ~1-2 years. How? Country Delight (CD) in 2024 raised ~₹160 Cr in Series E. It initially had a successful PMF, growing bootstrapped for its first 4 years without funding • Valuation jump - Series C Nov'21 : ~$94 MM Series D Mar'22 : ~$428 MM Series E Jan'24 : ~$790 MM . How? » By turning into a Free #Cashflow Machine (-ve WC biz). Somewhat like the retail-tech behemoth Apple! • In the last 8 years - 1.) Average cash collection time from customers has fallen from ~66 days, to just <10 days (mostly pay in advance) 2.) How long do they pay suppliers in? From >10 days in 2017, to ~25-30 days today. 3.) Average cash conversion cycle has gone from >45 days in 2015, to less than ~1 day today. ✓Result? Operating Cashflows >>> Profits » Cash on the books explodes - From ~₹12 Lakhs in FY'17, To over ~₹484 Crores in FY'24! World's "Highest Customer Retention" within D2C? ✓ Dairy category. Almost ~70% of all CD customers acquired ~3-4 years ago give nearly the SAME revenue, EVERY month consistently even till today. New customers add on to these, as CDs marketing spends in last couple of years grew ~5x, simultaneously exploding the free cashflows flywheel. In addition, Cross sell & Up-sell of "high gross margin" newly added products (~60% success rate) like ghee, paneer, vegetables, essentials, etc. In this model "owning customers long-term" gives - ✓ Highest LTV, Lowest CAC, Highest ROCE. Amidst giant peer brands like Amul and Mother Dairy that handle close to ~45M litres / day.. • Country Delight carved its "premium niche" from scratch - Growing ~1.5-2x YoY - From ₹0 to ~₹1380 Crores revenue in last ~8-9 years! - More than 15M deliveries per month - Network of 10,000+ Indian farmers, lakhs of cattle. One of my favourite quote, by the Founder - » Animals are the best non-depreciable assets because they only multiply ;) #india #business #startups #technology #consumer

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Product-market fit is hard. And it depends on multiple factors such as the external environment, other players, funding, the founding team, and more. But, can PMF be bought? Spoke to Mukesh Bansal about how Cult.Fit achieved PMF via Acquisition.

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{New pod 🎤} "𝗕𝘂𝗶𝗹𝗱𝗶𝗻𝗴 𝘀𝘂𝗰𝗰𝗲𝘀𝘀𝗳𝘂𝗹 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝘀 𝗮𝗻𝗱 𝗣𝗠 𝗰𝗮𝗿𝗲𝗲𝗿𝘀 𝗶𝗻 𝗳𝗶𝗻𝘁𝗲𝗰𝗵 𝗜𝗜 𝗟𝗲𝗮𝗿𝗻𝗶𝗻𝗴𝘀 𝗳𝗿𝗼𝗺 𝗦𝗾𝘂𝗮𝗿𝗲 𝗮𝗻𝗱 𝗠𝗲𝗿𝗰𝘂𝗿𝘆" Was super-fun to record this with Rohini Pandhi - Product Lead at Mercury and ex-Product Lead at Square/ Block. The first half of this episode covers best practices and frameworks used by best-in-class fintech companies like Square and Mercury to build products and drive go-to-market.  In the second half, we discuss insights and learnings for PM career planning in fintech, including ways to prepare for the potential impact of AI on product jobs. Some great learnings here for fintech product leaders, young PMs, and founders. Let me know what you think! Spotify - https://lnkd.in/dJQMM9sB Apple Podcasts - https://lnkd.in/dyDaCDk7 An Operator's Blog - https://lnkd.in/dREtbx9n

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At ProRider (Delivery Jobwala), we're on a mission to revolutionize the delivery job market by connecting skilled riders with top companies. Today, we're thrilled to announce our latest milestone: an association with Delhivery, India's largest fully integrated logistics provider, as we expand our reach across major metros and beyond. A Partnership Built on Vision 👉 Delhivery isn't just any logistics company. Since its inception in 2011, the team has fulfilled over 2 billion orders, established a nationwide presence, and built a network that services over 18,600 pin codes. With 24 automated sort centers, 94 gateways, and a robust team of over 57,000 people, Delhivery is truly the backbone of commerce in India. And now, ProRider is proud to be a part of this journey. Our collaboration with Delhivery underscores a shared commitment: to create opportunities for riders across India while supporting the quick commerce sector's growing needs. By joining forces, we aim to bring forth the best talent, ensuring that every delivery is seamless, every rider is empowered, and every journey is a step towards growth. What This Means for Our Riders 👉 For the riders associated with ProRider, this partnership opens up new doors. Delhivery's extensive operations across every state in India mean that our riders will now have access to opportunities in even the most remote corners of the country. Whether it's in bustling metros or emerging markets, ProRider's network will ensure that skilled riders are mobilized where they are needed the most. But this partnership isn't just about numbers; it's about making a difference. It's about offering riders a chance to be part of a system that values quality, innovation, and growth. With ProRider (Delivery Jobwala)'s commitment to optimizing rider income, career advancement, and providing ancillary services like microloans, our collaboration with Delhivery will further strengthen our rider community. Stay tuned as ProRider continues to break new ground, connect skilled riders with leading companies, and redefine what it means to be part of the delivery ecosystem in India. For those seeking services or more details, feel free to reach out to Neehar R or Aishaa K. We're here to help you navigate the future of delivery, one rider at a time... #Delhivery #logistic #lastmiledelivery #rider #ProRider

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Who exactly is losing market share in the hotly contest grocery commerce? I thought it must be the now-not-so modern retail, but I'm not so sure. Zepto raised $665 Mn at a valuation of $3.6 Bn, and is in talks to raise $250 Mn more. And their cofounder and CEO Aadit Palicha recently commented that they can beat DMart - Avenue Supermarts Ltd on GMV in the next 12-18 months. Swiggy Instamart also is growing, and Blinkit is likely to be more valuable than their owner Zomato itself - so they are all doing well, even if Dunzo isn't. Sure, no idea what JioMart Digital is doing, but deep pockets. Same with Tata Digital and their weird assortment forced to converge on Neu. bigbasket.com is trying to unlearn and relearn, and it just might. And Flipkart Grocery and Amazon Fresh are also upping their game - launching faster deliveries, discounts, improved fill rates, and selection. So I wonder if it is the modern-trade players? The likes of More Retail Private Limited, Spencer's Retail, STAR BAZAR, and SPAR Retail that are suffering? The nearest Spencer's to me is definitely a sore sight, now reduced to a shell of it's former glory - I think they aren't even replenishing inventory now. And we all know what happened to Big Bazaar - Future Retail. But Dmart itself isn't doing half bad - with pareto presence in just 23 cities, and no presence in UP (except NCR), Bihar, and West Bengal, they have considerable headroom, still. And they haven't yet quite solved for ecommerce, so while The Ken says that they are lost, they may find their way, eventually? I also don't think that the real consumption is growing, if at all, it may even shrink with the K-growth. Thus, some one _is_ losing share. And if it is not modern trade, then is it the regional chains? The single kiranas? The corner-store? The hand-cart? I'm not entirely sure because this data is hard to organize, and get. Would you know? Image created by AI in Microsoft Bing Copilot.

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Over the last few months, so many people have asked us why we are so bullish on social and live commerce in India. We've heard things like: 1. So many companies have tried and failed (true but tons of companies tried to make a smartphone before the iPhone came along) 2. Indian customers just don't display this kind of behaviour (this point deserves a different post) 3. It's a Chinese idea and copycat models don't work (agree with this one and we are extremely far away from a copy of Xiaohongshu, Taobao live, or JD live etc.) So, why are we so bullish? 1. The world today is artificial; everything is synthetic from the AI generated articles we read to the over-produced advertisements everywhere around us, we interact more with dead interfaces than with people. (Don't believe me, just think about why we are the loneliest and most depressed generation in history) What people are looking for is personal, not perfect. Authentic, real, engaging and fun. Commerce in India really lacks this. 2. Our vendors are building beautiful businesses; they curate and create fantastic experiences and products. What they need is a platform to get their stories out there. A place where buyers can talk to them, bridge trust, and shop with confidence. Think about categories like thrift, jewelry, accessories, and collectibles; here, shopping is a super social activity. We want to share our best looks and favourite hobbies with our friends and like-minded people. Vendors derive value from the increasing heterogeneity of offerings in the market. The market is more collaborative than competitive for them. 3. The market has matured, Gen-Z is the first digitally native generation in the world and their expectations from digital experiences are very different from people who used dial-up internet. Static listings aren't going to cut it in a few years, people are craving interaction, trust and, community and that's exactly what we're building. Join us for one of our upcoming streams! We'd love your feedback. Link in bio.

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my thoughts on this: i think lightspeed's report was dumb because while the facts and numbers they pulled were true and great to know, their conclusion slide (slide 2 or 3) showed that ultimately they don't actually believe in the region's potential. it concluded "SEA companies should be regional since day 1" instead of "global since day 1". they simply overfit to the past decade's data, and have a subconscious inferiority complex that prevents them from believing any SEA founder/company can do better than the past decade's SEA unicorns and become a *globally* important startup with great unit economics. they forgot that VC is about what is possible first and foremost, then what is probable. that's how you benefit from the power law. lightspeed report is all about probability. so disheartening to see it, and more disheartening to see gojek cofounder signing off on it. the bitter truth: the SEA tech startups that are unicorns mostly rushed to copy US or Chinese unicorns within months of the US/Chinese companies' breakout days, without doing the first principle thinking on "does this create $X in value in SEA and can we capture Y% of X and do X and Y, 2 independent variables, look attractive?" in other words, first gen SEA tech unicorn are built by founders who are great doers but not great thinkers. Travis Kalanick of Uber is a great think and a great doer. pardon me but the founders of Grab/Gojek were just doers. im sure they are capable thinkers, but they haven't applied it yet to creating anything massively valuable and original from the ground up. sad but true. the Lightspeed report looks at this truth and concludes SEA will fail to ever have thinker/doers, because it failed to have billion dollar thinker/doers in the past decade. i think this will further push away the talent that is indeed billion dollar thinker/doer but just needs an environment that doesn't doubt it every day. for the record, i absolutely believe it's possible to build a global tech giant from SEA today. it does not defy the laws of physics. to say this is impossible is to say nobody here will ever be great enough. the truth is, people who think that are the ones who are not great enough.

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