Ratan Tata, the esteemed chairman emeritus of Tata Sons, left an indelible mark on India’s entrepreneurial ecosystem before his passing on October 9, 2024, at the age of 86. While his legacy is often associated with the growth and diversification of the Tata conglomerate, his forward-thinking investments in startups have significantly shaped the landscape of Indian entrepreneurship.
Tata’s venture into the startup world is remarkable; he invested in around 45 startups, as reported by Moneycontrol, citing data from Tracxn, a company he himself backed. His investment strategy has proven to be astute, yielding substantial returns. Notable success stories include Upstox, which delivered an astonishing return of over 23,000%, and Lenskart, which returned 28 times the initial investment. Ola Electric and Firstcry, which both went public this year, provided returns of 10 times and 450%, respectively. These figures underscore Tata’s ability to identify promising ventures in their nascent stages and nurture them into thriving enterprises.
Among the many startups benefiting from Tata’s mentorship and investment is Teabox, a tea company founded by Kaushal Dugar. Dugar credits Tata’s involvement in 2016 as pivotal to Teabox’s success. He noted, “Once Mr. Tata came onboard, literally everyone started taking us seriously in India. We got the much-needed boost to grow.” This reflects not just Tata’s financial support, but also the credibility and visibility he lent to the startups he chose to back.
Ratan Tata’s influence extended beyond mere investments. His insights and guidance proved invaluable to many entrepreneurs. Abhiraj Singh Bhal, co-founder of Urban Company, shared his experience on social media, recounting their first meeting where Tata encouraged him by saying, “India needs what you are building. Keep the quality high and the rest will follow.” This kind of reassurance from a business icon not only inspires confidence but also fosters a culture of excellence among young entrepreneurs.
His dedication to nurturing the startup ecosystem was evident in his hands-on approach. Sudhir Sethi, founder and chairman of Chiratae Ventures, highlighted Tata’s commitment during challenging times, including the COVID-19 pandemic. Sethi noted that for over six years, Tata made time for him and the founders of their portfolio, even conducting meetings over Zoom. “In every interaction, what always stood out was his humility, his curiosity to learn more about the startup ecosystem, and his ability to advise on governance, integrity, strategy, and more,” Sethi remarked.
Ratan Tata’s approach to investment was not just about financial gains; it was about fostering innovation and supporting the next generation of entrepreneurs. His legacy continues to resonate through the numerous startups he mentored and invested in, each contributing to India’s burgeoning economy and vibrant startup culture.
In a world where the entrepreneurial landscape is constantly evolving, Ratan Tata’s vision and commitment to supporting startups have paved the way for countless success stories. His remarkable journey reflects the power of belief in innovation and the importance of nurturing talent, ensuring that his impact on India’s startup ecosystem will be felt for years to come. (Source- Hindustan Times)
