RIL keen on investing in start-ups, GenNext Innovation Hub graduates 11 startups

Mumbai

After mentoring 11 start-ups, the venture investment arm of Reliance Industries is now looking forward to invest in new companies which will be crucial to its growth, a top official said today.

Eleven start-ups completed a mentoring programme launched by RIL’s arm Gennext Ventures and Microsoft Ventures recently and both the partners today announced that they have started inviting applications for the second batch where around a dozen start-ups will be mentored.

“For the second batch our intent is yes (we will invest). For the first batch, we were not ready, we were learning. In second batch, we think that we can assimilate the learnings from the first batch and start to internally line up so that we are in a position to start investing,” Gennext Ventures Managing Partner Vivek Rai Gupta told PTI here.

Both RIL and Microsoft have not invested in any of the 11 companies which underwent the mentorship programme, he said, stressing that introduction to VC funds has resulted in 30-40 per cent of them getting commitments.

For investing, it will be looking at companies engaged in the digital space, including financial services, security, energy management, healthcare, home automation and connected cars, he said.

Gennext, which has already invested in two companies which are outside the first batch of 11, will be looking to invest in companies which are allied not just with the upcoming 4G launch in the telecom space, but also other business including the “core business”, he said.

He, however, did not give any idea about the money which RIL would invest, saying Gennext is “flexible”.

“We are very flexible. At the end of the day, what determines the ticket size is the opportunity because we are making investments as a corporate, by and large we will take only small stakes,” he said, adding that it will pick up only up to 15 per cent stake.

Gupta exuded confidence that with RIL showing faith in a company, it will be able to attract more financial investors.

“If we invest, we think our validation is a good stamp of approval and there are a lot of venture capitalists who will top up with their funding,” he said.

RIL wants the investments to be “mutually beneficial” both for itself as well as the company.

“For the companies, we provide value, the companies provide us solutions and services for our future growth interests,” he said.

Microsoft India’s director for start-ups, Kattayil Rajinish Menon said the company is not interested in investing in any of the start-ups which will get mentored by the accelerator programme.

Gupta said Gennext was pleasantly surprised with the quality of the start-ups and also their receptiveness.

For the second batch, both Gennext and Microsoft said they will target an equal number of of mentoring around a dozen start-ups at the former’s specially created facility at RIL’s campus in neighbouring Navi Mumbai.

Full text of official media communication on Gennext

GenNext Innovation Hub Graduates 11 Startups in the First Batch of Accelerator Program

-Graduating startups have witnessed significant growth, acquired high profile clients and received investments during the intensive four-month program
-GenNext Innovation Hub has opened applications for the second batch to commence June 2015

Mumbai, March 13th, 2015

The GenNext Innovation Hub, Mumbai based startup accelerator today announced the graduation of 11 technology startups from its accelerator program. The GenNext Innovation Hub is a joint initiative of two leading companies, Reliance Industries Limited (RIL) and Microsoft Ventures to develop the startup community across India. The event held in Mumbai, saw the startups showcase their businesses to more than 200 venture capitalists, influencers, corporate customers, mentors and leaders.

The GenNext Innovation Hub enables entrepreneurs to build their companies through an immersive, four-month-long program. Those selected gain access to business mentors, technical and design experts, and plug-and-play office space. They are also exposed to resources that help them apply their skills to working jointly with businesses and innovative technologies, in turn gaining valuable insights to build and modify their business models for Indian and global markets.

The success of the program can be measured by the success of the startups, who have all witnessed significant amounts of traction during the course of the program – winning deals from noted global brands and raising money from leading investors and VCs.

“I am very impressed with the depth of innovative problem-solving capability of the solutions developed by the startups, which addresses not just the India-specific needs but also, problems globally. ‘Innovate in India’ would power the ‘Make in India’ endeavour, and help generate thousands of jobs,” said, GenNext Chairman and RIL Board Member Dr. Raghunath A. Mashelkar.

Bhaskar Pramanik, Chairman, Microsoft India, added, “We firmly believe that a thriving startup ecosystem in India can contribute immensely to the country. In line with our commitment to India’s accelerated growth, we are committed to supporting the development of this ecosystem through Microsoft Ventures and its partners. We are delighted to see the strides made by this batch of startups, and with GenNext, we hope to continue to replicate the success in the future.”

The startups that graduated from GenNext Innovation Hub’s first batch today are:

1. Health Vectors, a predictive healthcare analytics company

2. AxleRate, a passenger safety and engagement platform

3. LogiNext, a last mile logistics solution provider

4. Tootle, an event discovery and engagement social media platform

5. Flexiguru, a personalised education content curation platform

6. Oztern, an adaptive entrance test preparation platform

7. Fropcorn, a proprietary location content distribution company

8. CarIQ, a connected car platform

9. Coitor, a virtual trial room platform

10. Interview Mocha, a pre testing skill assessment company

11. Light, the world’s first answering engine, that was launched today

During the four-month program, the startups were mentored on business models, customer acquisition strategy, technology comprising Ui/UX and cloud, analytics, and financing models. They also had regular interactions with industry leaders from retail, media, transportation, education, finance, legal and intellectual property.

“The best thing about this acceleration hub was that they took me back to my basics and got me to question every assumption of passenger engagement. In fact, it was at the hub that we were able to conceptualize and implement an intuitive voice-based passenger security system,” said Varad Kumaravelu, founder of AxelRate, a Singapore-based startup.

“This four-month stint at the GenNext Innovation Hub gave my team the confidence to create a product that is disruptive and relevant not just for India, but also in global markets. The team at GenNext made us push the boundaries to build a robust and scalable business,” said Dr. Subhasish Sircar, founder of Health Vectors and a Wharton Alumini.

GenNext innovation Hub is now accepting applications for second batch, which will start in June 2015. Visit www.gennexthub.com for more details.