Today: Apr 23, 2024

Celebs & HNIs: The Startup Saviors During Funding Winters!

4 months ago

The Indian startup ecosystem is currently facing funding challenges, with a 72% decline in funding in 2023 alone. This has led to a slowdown in investment in tech startups, causing India’s global ranking to slip from third to fourth place and only two new unicorns being registered. However, high-net-worth individuals (HNIs) and celebrities have emerged as a ray of hope for struggling startups.

HNIs have made over 101 investments in 2023, providing much-needed capital to the ecosystem. Vijay Shekhar Sharma, founder and CEO of Paytm, has launched the VSS Investment Fund with a corpus of Rs 30 crore, focusing on AI and EV-related startups. Nithin and Nikhil Kamath, co-founders of Zerodha, have allocated Rs 1,000 crore through their investment firm Rainmatter Capital to support promising startups.

Celebrities are also entering the startup investment arena, using their influence to promote and support startups. Alia Bhatt has endorsed the sustainable diaper brand SuperBottoms, while Akshay Kumar has invested in Two Brothers Organic Farm to promote sustainable agriculture. Other celebrities such as Ranveer Singh, Deepika Padukone, Dia Mirza, Kareena Kapoor Khan, and Ekta Kapoor are also actively participating in startup investments.

The involvement of HNIs and celebrities not only injects capital into struggling startups but also provides valuable support, visibility, and scale. Their proactive involvement demonstrates the resilience and adaptability of the entrepreneurial spirit, giving hope for the revival and evolution of the Indian startup landscape.