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Kunal Bahl on Titan Capital’s new fund, investment thesis, and encouraging domestic capital
- Titan Capital, founded by Snapdeal’s Kunal Bahl and Rohit Bansal, has made the final close of its new fund at Rs 333 crore. The venture capital firm wants to exclusively invest in follow-on rounds of some of the top-performing companies from its portfolio of 280 startups.
- Titan Capital has selected many large, reputed family offices, CEOs of large listed companies, and founders as well from the startup ecosystem who have scaled good businesses to back their Winners Fund.
- It is predominantly domestic capital. Bahl passionately feels about activating domestic capital. The recent data reveals that only 15% of startup funding in India last year came from domestic sources. He hopes that other good investors also give an opportunity to domestic capital to participate in the startup economy.
- The VC firm is looking to invest in 20 startups with an average ticket size of Rs 15 crore. The additional capital will serve as a mark of confidence in its portfolio.
- The strategy behind the new fund is to invest in the standout companies within the Titan Seed Fund portfolio that they already know well, making it an ideal opportunity for them to double down on their best prospects.
- They prioritise great founding teams that have demonstrated success in various fields, interesting market spaces specifically companies targeting 'laughably small TAM (Total Addressable Market)', and importance of generating solid unit economics, as they represent the core of any business.
- Titan Capital has backed tech-enabled companies and understands these business models well. However, there has been a recent outcry about there being no money for growth-stage companies in India. He said, for now, they just felt setting up the Winners Fund was for their founders.
- The firm said there are 2-3 deals in the pipeline as part of Winners Fund, one company is in the business-to-business (B2B) space, another in construction material space and another in the quick service restaurant (QSR) space.
- There is no strict timeline as such but roughly around 2-3 years, Titan Capital expects to disperse the entire fund. It depends on if more companies mature faster, they will invest faster.
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