Wipro's Rs 250 Cr Pledge For Consumer Startups in India, South Asia

Catalysing the growth of consumer startups in India and Southeast Asia, Wipro Consumer Care–Ventures, the venture funding arm of Wipro Consumer Care & Lighting, has launched ‘Fund II.' This Rs 250 crore fund aims to continue the momentum generated by its predecessor, focusing on strategic investments and robust support for emerging companies.

Strategic Investment Approach and Focus Areas

Sumit Keshan, Managing Partner at Wipro Consumer Care - Ventures, unveiled the fund's key strategies.

"Fund II will seek e-commerce-driven companies from Pre-Series A onwards, adopting a minority stake approach of up to 25 percent," Keshan stated.

The primary focus will be on companies operating in personal care, skin care, home care, wellness, food, fragrances, beauty, and personal care. The geographical coverage will extend across India and Southeast Asia, where the fund aims to contribute value beyond capital infusion.

Nurturing Startups for Long-Term Success

Highlighting the fund's commitment to the startups it invests in, Keshan emphasized the importance of long-term building and maintaining a sound governance mindset. The approach involves not only financial backing but also active involvement in various facets of a startup's journey.

"The fund has successfully added value to its investments by offering support in offline focus, R&D, sourcing (especially from overseas vendors), identifying third-party manufacturers, and finance discipline," Keshan added.

Wipro Consumer Care-Ventures, with its initial Rs 200 crore venture capital fund launched four years ago, has so far made 10 investments, showcasing a robust performance with a Multiple on Invested Capital (MOIC) running at over 2.2x and a strong Internal Rate of Return (IRR) above market benchmarks.

The fund has already partially exited two of its investments, one of which recorded a tenfold increase in a short period. While a substantial portion of the fund has been committed, the management anticipates making a few more new investments and several follow-ons in the near future.

Navigating Current Market Challenges

Acknowledging the current challenges in the investment space, Keshan emphasized the importance of stability, scalability, and a clear view towards profitability for startups. Despite the prevailing headwinds, the fund remains optimistic about the potential for startups to thrive with the right support and strategic guidance.

Fostering Innovation and Growth

Wipro Consumer Care-Ventures continues to play a pivotal role in nurturing the entrepreneurial spirit in the consumer sector. 'Fund II' stands will help fostering innovation, governance, and the long-term success of startups in India and Southeast Asia. As the venture funding arm embarks on this new chapter, it sets the stage for a dynamic ecosystem where consumer startups can flourish and contribute to the evolving landscape of the industry.

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