Agarwal has additionally arrange an funding agency Aroa Ventures to fund early-stage startups
The 26-year-old entrepreneur has joined Enterprise Catalysts as an advisor
DataLabs’ evaluation present that Tier 1 startups accounted for 96.54% of whole funding in Q1 2019
Resort and hospitality unicorn OYO’s CEO and cofounder Ritesh Agarwal has gone bullish on funding Indian startups throughout a number of domains, enterprise fashions and likewise areas. The 26-year-old entrepreneur has not solely arrange an funding agency in Singapore referred to as Aroa Ventures to put money into early-stage startups, however has now additionally joined Mumbai-based built-in incubator Enterprise Catalysts as an advisor.
Whereas a number of different profitable entrepreneurs like Paytm’s Vijay Shekhar Sharma, Cred’s Kunal Shah, Flipkart’s Sachin Bansal and Binny Bansal, and Snapdeal’s Kunal Bahl have gone forward with investing in startups of their private capability, OYO’s Agarwal is planning to go the VC approach. Nonetheless, particular person investments usually are not utterly out of the image for Agarwal. Final yr OYO’s high executives, together with founder Agarwal, had pooled their particular person angel investments right into a restricted legal responsibility partnership agency Raaga Companions LLP to put money into early-stage startups.
Along with his newest dash at Enterprise Catalysts, he plans to spice up entrepreneurship throughout Tier I, Tier II, Tier III and past. Agarwal, who comes from a small district Rayagada in Odisha, realises the significance of mentorship and steerage for younger and early-stage founders, particularly from Tier II and Tier III cities. He went on to develop finances lodge startup OYO right into a $10 Bn enterprise unfold throughout 80 nations inside a span of seven years.
Agarwal emphasised, “I started OYO at a very young age and at a time when the ecosystem was not fully developed. I was fortunate enough to get some great mentors like Dr Apoorva (Dr. Apoorv Sharma of Venture Catalysts), Bejul Somaia, and many others, who guided and supported me in my start-up journey… Now that I have established myself as an entrepreneur, I think it is time to give back to society and support entrepreneurs like them.”
Now, together with his collaboration with Enterprise Catalysts, Agarwal plan allows younger entrepreneurs from small cities, who don’t get related alternatives that their friends in larger cities or metros get. Sharma, founding father of Enterprise Catalysts, added, “his (Agarwal’s) learnings may even assist many upcoming entrepreneurs which have potential to develop into the following Unicorn however have very restricted entry to the best help and mentorship.
Tier II, Tier III Strive To Set Mark In Indian Startup Ecosystem
Whereas Agarwal managed to search out his solution to the highest, a number of Indian entrepreneurs coming from Tier II, Tier III should not have the identical alternatives to develop within the startup ecosystem which have an inclination in direction of repeat founders, folks with exponential schooling backgrounds, and the IITians within the business.
Evaluation by Datalabs by Inc42 exhibits that solely 20% of the whole startups in India are based mostly in Tier II and Tier III cities, with over 5,800 startups in Tier II cities alone. The entire funding for startups from Tier II cities alone is $1.three Bn (2014-Q1 2019). Nonetheless, when in comparison with Tier I, there’s a clear imbalance in startups and funding in Tier II and Tier III cities.
Tier 1 startups accounted for 96.54% of whole funding in Q1 2019. Whereas Tier II did superb with two offers in Jaipur and one deal every in Surat, Madhya Pradesh, Uttar Pradesh, Punjab, Lucknow, Kolkata, Kochi and Ahmedabad, there was a pointy decline when in comparison with Tier III offers. In addition to the distinction in funding quantities, the typical ticket measurement for investments in Tier I startups was additionally increased than investments in startups from Tier II and past.
Additional out of roughly 338 lively angel buyers in India, solely 5.92% have been lively in Tier II cities.