Wipro Consumer Care-Ventures, the startup investment arm of Wipro’s consumer division, has unveiled its second fund with a substantial corpus of Rs 250 crore. This fund will be dedicated to supporting and investing in emerging consumer startups across India and Southeast Asia.
Continued Focus on E-Commerce Driven Startups:
The fund, according to Sumit Keshan, Managing Partner of Wipro Consumer Care-Ventures, will primarily target e-commerce driven companies from the Pre-Series A stage onward. The investment approach involves taking a minority stake, capped at 25%, while continuing the strategy of actively assisting and nurturing startups as needed.
Strategic Sector Focus:
Keshan emphasised the fund’s focus on startups operating within various categories and sub-categories, including personal care, skin care, home care, wellness, food, fragrances, and BPC (Beauty and Personal Care).
Track Record of Success:
Wipro Consumer Care-Ventures previously launched its first venture capital fund four years ago, with a corpus of Rs 200 crore. This fund has seen remarkable success, making ten investments to date. The company reports a multiple on invested capital exceeding 2.2x, with an internal rate of return surpassing market benchmarks.
Impressive Returns and Strategic Exits:
The startup investment arm has already made partial exits from two of its investments, achieving an impressive 10x return on one of them within a short period. The fund’s investments have extended across India, Southeast Asia, and participation in a venture capital fund.
Ongoing Commitments and Future Plans:
While a significant portion of the fund has been committed, Wipro Consumer Care-Ventures still has plans to make a couple of new investments and additional follow-ons. Despite current challenges in the investing landscape, the company sees a crucial need for startups to prioritize stability, scalability, and a clear path to profitability.
With the launch of its second fund, Wipro Consumer Care-Ventures reaffirms its commitment to fostering innovation and growth in the consumer startup ecosystem. By strategically investing in promising ventures, the company aims to contribute to the development of the consumer sector in both India and Southeast Asia.
